(Figure: Aggregate Demand Shift) the Shift in Aggregate Demand

question 229

Multiple Choice

(Figure: Aggregate Demand Shift) The shift in aggregate demand depicted may be due to a(n) :

• A) increase in consumer confidence.
• B) decrease in interest rates.
• C) increase in income taxes.
• D) increase in exports.

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Definitions:

Required Return

The minimum annual percentage earned by an investment that will induce individuals or companies to commit money to the investment. It is also known as the cost of capital when applied to investment appraisal.

Ignore Taxes

A financial analysis assumption where tax implications are disregarded to simplify the calculation.

Initial Cost

The initial expenditure associated with purchasing an asset or starting a project, including setup, implementation, and acquisition costs.

CCA Class

Stands for Capital Cost Allowance Class, which is a Canadian tax categorization for depreciation of tangible and intangible assets.