Adding a Risk Premium to the Short-Run Model

question 14

Multiple Choice

Adding a risk premium to the short-run model:

• A)shifts the MP curve up.
• B)shifts the AD curve down.
• C)has no (direct)impact on the IS curve.
• D)a-c
• E)a and c only

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Definitions:

Promotion

A marketing strategy involving the use of various techniques to increase consumer awareness, interest, and purchase of products or services.

Consumer Need

A requirement or desire that motivates a customer to purchase products or services to solve a problem or fulfill a want.

Home Security

Systems and measures taken to protect a home and its inhabitants from burglaries, intrusions, and other threats.

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and to its eventual delivery to the end user.