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The AD Curve Shifts to the Right with a __________

question 117

Multiple Choice

The AD curve shifts to the right with a __________ in government purchases (G) or a __________ in taxes.


Definitions:

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a predetermined price.

Redemption Provision

A clause in a bond or other fixed-income security that allows the issuer to repurchase and retire its bonds before the maturity date.

Unsecured Bonds

Bonds issued without collateral, relying solely on the issuer's creditworthiness.

Debentures

A type of long-term debt instrument used by corporations and governments to raise funds, not secured by physical assets or collateral.

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