Which of the Following Will Shift the Aggregate Demand Curve

question 103

Multiple Choice

Which of the following will shift the aggregate demand curve to the right,ceteris paribus?

• A)an increase in interest rates
• B)a decrease in disposable income
• C)a decrease in expected profits for firms
• D)an increase in net exports

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Definitions:

Fair Value

An estimate of the price at which an asset or liability would change hands between willing parties, not under duress, in an orderly transaction.

Initial Value Method

An accounting method where investments are recorded at their cost at the time of acquisition without subsequent adjustment for changes in market value.

Consolidation Worksheet

A tool used in accounting to combine the financial statements of a parent company with its subsidiaries to prepare a consolidated statement.

Equity Method

An accounting technique used to record investments in other companies by recognizing the investor's share of the investee's profits or losses.