An Increase in Aggregate Demand Will Tend to Cause Which

question 18

Multiple Choice

An increase in aggregate demand will tend to cause which of the following?

• A) a deflationary gap
• B) a recessionary gap
• C) cost-push inflation
• D) none of the above

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Definitions:

Current Liabilities

Short-term financial obligations that are due typically within one year or within a normal operating cycle.

Non-Eligible Dividends

are dividends from a corporation that do not qualify for the enhanced dividend tax credit in the recipient's hands, often because the issuing corporation pays tax at a rate less than the standard corporate rate.

Capital Gains

The profit from the sale of an asset or investment when the selling price exceeds the original purchase price.

Marginal Tax Rates

Marginal tax rates are the rates of tax applied to the next dollar of income, used to determine the tax impact of additional income or deductions.