A Decrease in Aggregate Demand Will

question 100

Multiple Choice

A decrease in aggregate demand will

• A)cause inflation.
• B)decrease unemployment.
• C)move the economy to a lower point on the short-run Phillips curve.
• D)cause the short-run Phillips curve to shift to the right.

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Definitions:

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it’s the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Investment Proposals

Formal plans or suggestions put forward for consideration or discussion, especially one concerning financial investment.

Capital Budgeting

The process of planning and evaluating investments in long-term assets, focusing on projects that will generate future profits.

Required Rate

Typically refers to the minimum return rate needed on an investment, considering risk and funding costs.