If Investment Decreases, the AE Curve Shifts

question 423

Multiple Choice

If investment decreases, the AE curve shifts

• A) upward and the AD curve shifts rightward.
• B) downward and the AD curve shifts leftward.
• C) upward and there is a movement along the AD curve.
• D) downward and there is a movement along the AD curve.

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Definitions:

Open Market

A marketplace that is accessible to both buyers and sellers where securities, commodities, and goods are traded freely.

Quiet Period

A mandated time frame where promotional or public communications by a company are restricted by regulatory authorities before an IPO.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Cumulative Voting

A method of electing boards of directors in which stockholders can cast all of their votes for a single seat. Enables minority interests to get at least some representation on the board.