CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Which of the following will reduce U.S. aggregate demand?
I. The economic recession in Japan and Western Europe
II. A decrease in recession fears
III. An increase in real interest rates in the U.S.
A. II and III
B. I and III
C. I, II and III
Explanation: An increase in the real interest rate makes both consumer durable goods and investment projects more expensive, thus reducing aggregate demand. The recession in Japan and Western Europe will reduce demand for U.S. goods (U.S. exports) by people in these countries.

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