For a Fixed Inflation Rate Target, a Decrease in the Inflation

question 33

Multiple Choice

For a fixed inflation rate target, a decrease in the inflation rate corresponds to a ________ the aggregate demand curve and a decrease in exogenous spending corresponds to a ________ the aggregate demand curve.

• A)shift left of; movement up
• B)movement up; shift right of
• C)shift left of; shift right of
• D)movement down; shift left of

---

Definitions:

Overgeneralizations

A cognitive bias involving broad conclusions or rules based on a single event or piece of evidence.

Arrogant

Exhibiting an inflated sense of one's own importance, often accompanied by a disdainful view towards others.

Competent

Possessing the necessary ability, knowledge, or skill to perform a task effectively.

Conceited

Having an excessively favorable opinion of one's abilities, appearance, or worth.