Which of the Following Will Cause the Aggregate Demand Curve

question 139

Multiple Choice

Which of the following will cause the aggregate demand curve to shift to the right?

• A)A decrease in the money supply.
• B)A decrease in the interest rate.
• C)An increase in the exchange rate.
• D)A decrease in government spending.

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Definitions:

Dividend

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Annual Real Rate

The annual rate of return on an investment, adjusted for inflation, indicating the real purchasing power increase over the investment period.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified period, including interest, dividends, and capital gains.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.