In Deriving the Aggregate Demand Curve a ________ Price Level

question 51

Multiple Choice

In deriving the aggregate demand curve a ________ price level ________ the money supply in real terms,raises interest rates,and ________ the equilibrium level of aggregate output.

• A)higher; reduces; raises
• B)higher; reduces; lowers
• C)lower; increases; raises
• D)lower; increases; lowers

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Definitions:

Rate of Total Return

The percentage gain or loss on an investment over a specified period, considering both price appreciation and dividends or interest.

Compounded Quarterly

A method of calculating interest in which the interest is added to the principal amount every three months, then interest is calculated on the new total.

Principal Earning

The portion of an investment's return that is generated from the original amount invested, excluding any interest earned.

Six Years

A period of time equal to six times the length of one calendar year.