Which of the Following Factors Will Cause the Aggregate Demand

question 185

Multiple Choice

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

• A) reduction in the aggregate price level
• B) reduction in personal income taxes
• C) increase in interest rates
• D) drop in foreign income

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Definitions:

Escrow

A legal arrangement in which a third party temporarily holds money, property, or documents until certain conditions are fulfilled.

Real Estate

Property consisting of land or buildings, and the natural resources of the land including uncultivated flora and fauna, farmed crops and livestock, water, and mineral deposits.

Mortgage Debt

The amount of money borrowed to purchase a property, which the borrower is obligated to repay with interest to the lender, typically secured by the property itself.

Equity of Redemption

The right of a borrower to reclaim their property pledged as collateral upon full repayment of the debt prior to foreclosure.