Factors That Shift the AD Curve Include ________

question 77

Multiple Choice

Factors that shift the AD Curve include ________.

• A)autonomous net exports
• B)autonomous inflation
• C)autonomous interest rates
• D)all of the above
• E)none of the above

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Definitions:

Acquisition Differential

The Acquisition Differential is the difference between the purchase price of a company and the fair value of its identifiable net assets at the time of acquisition.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt.

Cost Method

An accounting method used for recording investments, where the investment is recorded at purchase cost without subsequent change for market value fluctuations.

SPE

A Special Purpose Entity is a legal entity created by a firm specifically to isolate financial risk, typically for securitization or financing projects.