Other Things the Same,an Increase in the Amount of Capital

question 7

Multiple Choice

Other things the same,an increase in the amount of capital firms wish to purchase would initially shift

• A)aggregate demand right.
• B)aggregate demand left.
• C)aggregate supply right.
• D)aggregate supply left.

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Definitions:

Population

The whole number of people or inhabitants in a country or region.

Compounded Continuously

A method of calculating interest where the interest amount is constantly added to the principal, leading to exponential growth.

Annual Interest Rate

The percentage of a sum of money charged for its use per year.

Compounded Continuously

A way of calculating interest where the frequency of compounding is so high that it is effectively continuous, leading to exponential growth.