Which of the Following Would Cause Aggregate Demand to Shift

question 92

Multiple Choice

Which of the following would cause aggregate demand to shift to the right?

• A) Increased income taxes
• B) Decreased corporate income taxes
• C) Decreased consumer confidence
• D) Decreased government spending

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Definitions:

Expiration Date

The specific date on which an options contract or other financial instrument becomes void and the rights under it cease to exist.

Put Option

A financial contract giving the option buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Writer

In finance, a writer is the seller of an option who collects the premium payment from the buyer and is obligated to fulfill the terms of the contract if the option is exercised.

Strike Price

The price at which the holder of an option can buy (in case of a call option) or sell (in case of a put option) the underlying security.