When We Add the Financial Friction to the AD Curve

question 64

Multiple Choice

When we add the financial friction to the AD curve it:

• A) is represented by a downward movement along the AD curve.
• B) is represented by a downward movement along the AS curve.
• C) shifts the AD curve down.
• D) shifts the AS curve up.
• E) has no impact on the AD curve.

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Definitions:

Management and Staffs

The process and people involved in planning, organizing, leading, and controlling an organization's resources to achieve its objectives.

Conscious Determinants

Factors that are consciously recognized and understood to influence an individual's thoughts, feelings, and behaviors.

Cognitive

Relating to mental activities such as thinking, understanding, learning, and remembering.

Psychoanalytic

Pertaining to a theory of psychology and method of psychotherapy that aims to treat mental disorders by investigating the interaction of conscious and unconscious elements in the mind.