A Shift to the ________ of the __________ Curve Would

question 160

Multiple Choice

A shift to the ________ of the __________ curve would cause the price level to decrease and employment to decrease.

• A) left;aggregate demand
• B) right;aggregate demand
• C) left;short-run aggregate supply
• D) right;short-run aggregate supply

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Definitions:

Convertible Bonds

Bonds that can be converted into a predetermined amount of the issuing company's equity at certain times during the bond's life, usually at the discretion of the bondholder.

Fair Market Values

The price at which an asset would change hands between willing and informed buyers and sellers in an arm's length transaction.

Conversion Terms

Conditions that specify the circumstances under which a financial instrument may be converted into another, typically from debt to equity.

Market Value Method

The Market Value Method is an accounting practice of valuing assets based on their current market prices.