An Economic Expansion Caused by a Shift in Aggregate Demand

question 10

Multiple Choice

An economic expansion caused by a shift in aggregate demand remedies itself over time as the expected price level

• A)falls,shifting aggregate demand right.
• B)rises,shifting aggregate demand left.
• C)falls,shifting aggregate supply right.
• D)rises,shifting aggregate supply left.

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Definitions:

FCFE

Free Cash Flow to Equity, a measure of how much cash is available to the equity shareholders of a company after all expenses, reinvestment, and debt repayment.

Intrinsic Value

The actual, fundamental worth of an asset, as opposed to its market price or book value.

WACC

Weighted Average Cost of Capital, a measure of a company's cost of capital in which each category of capital is proportionately weighted.

Valuation Model

A framework or methodology used to determine the fair value of an asset, business, or investment based on its fundamentals and future earning potential.