Aggregate Demand

question 112

Multiple Choice

Aggregate demand

• A)decreases if expected future income rises.
• B)increases if the exchange rate rises.
• C)increases if government expenditures decrease.
• D)increases if the expected inflation rate increases.
• E)increases if aggregate supply increases.

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Definitions:

Contract

A legally binding agreement between two or more parties that is enforceable by law, outlining obligations and rights of the parties involved.

Illusory Contract

A supposed agreement that lacks the necessary elements of a binding contract, giving the illusion of a mutual contract without any enforceable commitment.

Consideration Requirement

The consideration requirement is a fundamental principle of contract law that mandates a contract must involve an exchange of value between the parties for it to be legally binding.

Monetary Value

The specific amount of money something is worth, often determined by market conditions, demand, and utility.