Which of the Following Would Be True of the Aggregate

question 6

Multiple Choice

Which of the following would be true of the aggregate demand curve of an economy if investment grew by a smaller magnitude than imports?

• A)The aggregate demand curve would shift to the right.
• B)The aggregate demand curve would shift to the left.
• C)The aggregate demand curve would not shift at all.
• D)The slope of the aggregate demand curve would increase.
• E)The slope of the aggregate demand curve would decrease.

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Definitions:

Interest

The cost of borrowing money, often expressed as a percentage of the amount borrowed, paid to the lender over a specified period.

Time-Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Money

Any item that is generally acceptable to sellers in exchange for goods and services.

Present Value

A calculation of today's value of money to be received in the future or ongoing cash flows, based on a given rate of return.