Which of the Following Shifts Aggregate Demand to the Right

question 138

Multiple Choice

Which of the following shifts aggregate demand to the right?

• A)both an investment tax credit and a decrease in income tax rates
• B)an investment tax credit but not a decrease in income tax rates
• C)a decrease in income tax rates but not an investment tax credit
• D)neither an investment tax credit nor a decrease in income tax rates

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Definitions:

Minimum Required Return

The lowest acceptable return on an investment, based on risk tolerance and financial goals.

Residual Income

The income that exceeds the minimum required return on investment or capital employed; often used as a performance measure.

Return On Investment

A measure of the profitability of an investment, calculated as the net profit from the investment divided by its initial cost.

Sales Dollars

The total revenue generated from the sale of goods or services, typically reported in a company's financial currency.