Which of the Following Would Likely Cause Aggregate Demand to Shift

question 110

Multiple Choice

Which of the following would likely cause aggregate demand to shift to the left?

• A) Higher interest rates discouraging borrowing
• B) Higher tariffs on all imports into the United States
• C) Greater consumer confidence about the future
• D) All of these would likely cause aggregate demand to shift to the left.

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Definitions:

Transfer Pricing Policy

A set of regulations and procedures that multinational companies use to set prices for transactions between their different legal entities.

Vertical Integration

Organizational form in which a firm contains several divisions, with some producing parts and components that others use to produce finished products.

Monopoly Seller

A business entity that is the sole provider of a particular good or service, giving it significant control over the market price.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good or service varies with the quantity produced.