The Aggregate Demand Curve Would Shift to the Left If

question 104

Multiple Choice

The aggregate demand curve would shift to the left if

• A)the economic conditions in Europe improved.
• B)there was a tax decrease.
• C)the Bank of Canada caused the real interest rate to increase.
• D)the foreign exchange rate of the dollar decreased.

---

Definitions:

Flotation Costs

Expenses incurred by a company in issuing new securities, including fees for underwriters, legal, accounting, and other registration and compliance costs.

Call Premium

The extra amount paid over the face value of a bond when it is called before its maturity date.

Equity Carve-out

A process in which a company sells a portion of the equity of a subsidiary or division to outside investors, typically through a public offering.

Spin-out

A type of corporate restructuring where a division of a parent company becomes an independent business. The parent company may retain a stake in the new company.