If Aggregate Demand Just Increased, Which of the Following May

question 217

Multiple Choice

If aggregate demand just increased, which of the following may have caused the increase?

• A)an increase in government purchases
• B)an increase in the interest rate
• C)an increase in the price level
• D)an increase in imports
• E)an increase in taxes

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Definitions:

Profitable

Being profitable means that a company or business generates more revenue than the costs involved in its operation, resulting in a positive financial gain.

Friendly Merger

A merger agreed upon by all parties involved, where the companies willingly combine due to perceived mutual benefits.

Hostile Merger

A takeover attempt that is made against the wishes of the target company's management and board of directors.

Merger Negotiations

Discussions and strategic planning between two or more companies with the goal of combining their operations, typically to achieve synergies.