Which of the Following Is an Effect of an Increase

question 87

Multiple Choice

Which of the following is an effect of an increase in government purchases?

• A)It decreases interest rates.
• B)It results in a net decrease in aggregate demand.
• C)It crowds out investment spending by business.
• D)It decreases money demand.

Understand the duties and responsibilities of principals and agents within an agency relationship.

Identify the different types of agency relationships and the conditions under which they are formed.

Recognize the legal consequences of actions taken by agents on behalf of principals.

Describe the rights and obligations of principals and agents regarding compensation and reimbursement.

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Definitions:

Rate of Return

The percentage of profit or loss on an investment over a period.

Guaranteed Rate

A promised or assured rate of return on an investment or loan.

Special Account

An account created for a specific, often non-routine, purpose, which may involve unique transactions or conditions.

Withdraw

The act of removing funds from a bank account or the action of retracting from a position or commitment.