Which of the Following Would Cause the Short-Run Aggregate Supply

question 200

Multiple Choice

Which of the following would cause the short-run aggregate supply curve to shift to the right?

• A)an increase in the price level
• B)a decrease in inflation expectations
• C)a technological advance
• D)an increase in interest rates

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Definitions:

Immunization

A strategy in fixed-income portfolio management to shield the portfolio's value from interest rate movements.

Duration

A measure of the sensitivity of the price of a bond or other fixed-income investment to changes in interest rates, often used to assess risk.

Interest-Rate Change

A fluctuation in the cost of borrowing or the return on savings, which can significantly impact financial markets and economic conditions.

Term to Maturity

The duration of time until the final repayment date of a loan, bond, or other financial instrument.