Changes in the Interest Rate

question 62

Multiple Choice

Changes in the interest rate

• A)shift aggregate demand whether they are caused by changes in the price level or by changes in fiscal or monetary policy.
• B)shift aggregate demand if they are caused by changes in the price level, but not if they are caused by changes in fiscal or monetary policy.
• C)shift aggregate demand if they are caused by fiscal or monetary policy, but not if they are caused by changes in the price level.
• D)do not shift aggregate demand.

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Definitions:

Decision Makers

Individuals or groups within an organization responsible for making choices that affect the company’s strategy, operations, and financial outcomes.

Adjusting Journal Entries

Entries made in the accounting records to correct errors or allocate income and expenses to the correct periods.

Journal Entry Icon

A graphical representation or shortcut in software, used to access the feature where financial transactions are manually recorded.

Trial Balance

A bookkeeping report that lists the balances of all ledgers and accounts to check that debits equal credits in the double-entry accounting system.