In Which Case Can We Be Sure Aggregate Demand Shifts

question 37

Multiple Choice

In which case can we be sure aggregate demand shifts left overall?

• A)people want to save more for retirement and the Fed increases the money supply.
• B)people want to save more for retirement and the Fed decreases the money supply.
• C)people want to save less for retirement and the Fed increases the money supply.
• D)people want to save less for retirement and the Fed decreases the money supply.

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Definitions:

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms for payment of losses or damages covered by the policy.

Sales Taxes Payable

Liabilities recorded on the balance sheet for sales tax collected from customers on behalf of governmental entities, to be remitted in the future.

Sales Tax Expense

The cost incurred by a business collecting sales tax from customers, which is then remitted to the government, not to be confused with a direct business expense.

Accrued Interest

Interest that has been incurred but not yet paid, typically recorded as a liability on the balance sheet.