Which of the Following Will Shift the Aggregate Demand Curve

question 36

Multiple Choice

Which of the following will shift the aggregate demand curve to the left?

• A) Income taxes are lowered.
• B) The government increases spending on education.
• C) Consumers become optimistic about the future.
• D) A new technology is developed that will increase profits.
• E) Foreign economies fall into recession,reducing their demand for domestic exports.

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Definitions:

Arbitrage Opportunity

A situation where a trader can make a profit without risk by simultaneously buying and selling the same or equivalent assets in different markets to exploit price differences.

Risk-free Rate

A theoretical return on an investment with zero risk of financial loss, often represented by government bonds.

Alpha

Alpha is a financial metric indicating the performance of an investment relative to a benchmark index, representing the extra value that a portfolio manager adds or subtracts from a fund's return.

Expected Rate of Return

The projected percentage return on an investment over a given period, factoring in all known variables.