A Decrease in the Price Level Shifts the ______ Curve

question 11

Multiple Choice

A decrease in the price level shifts the ______ curve to the right, and the aggregate demand curve ______.

• A) IS; shifts to the right
• B) IS; does not shift
• C) LM: shifts to the right
• D) LM; does not shift

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Definitions:

Voting Rights

The right of shareholders to vote on corporate matters, typically exercised during annual general meetings.

Common Stock

Equity securities representing ownership shares in a corporation, with voting rights and potential dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Preemptive Right

The right of the stockholder to purchase additional shares of stock to maintain a proportionate interest when the corporation issues additional stock.