The Aggregate Demand Curve Will Shift to the Left If

question 133

Multiple Choice

The aggregate demand curve will shift to the left if

• A) people are more optimistic about their future.
• B) a reduction in the price level pushes down borrowing costs.
• C) government expenditures increase.
• D) the national incomes of our trading partners decrease.

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Definitions:

Earnings Before Interest and Taxes

A financial metric indicating the profitability of a business before accounting for interest and tax expenses.

Return on Assets

A financial metric that assesses a firm's ability to generate earnings from its assets, determined by dividing its net income by its overall assets.

Earning Per Share

The earnings a company makes per share of its common stock outstanding, signifying how profitable the company is.

Total Equity

The value left in a company after deducting total liabilities from total assets, representing the ownership value in the company.