In a Graph of the Aggregate Demand Curve,an Increase in Investment

question 26

Multiple Choice

In a graph of the aggregate demand curve,an increase in investment by businesses is represented by a:

• A) Movement down the curve.
• B) Movement up the curve.
• C) Rightward shift of the curve.
• D) Leftward shift of the curve.

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Definitions:

Debt

Amount of money borrowed by one party from another, used by many corporations to grow beyond what they could from earnings alone.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing assets minus liabilities.

Stock Repurchase

A company's buyback of its own shares from the marketplace, reducing the number of outstanding shares, which can increase the value of remaining shares.

Investment

The process of distributing funds or resources in anticipation of earning profits or income.