Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:

Which of the following is likely to use the concepts of game theory?

A) Deciding on how much to spend on monthly groceries B) Exit decision of competitive firms in the long run C) International trade negotiation D) Pricing decision of a firm operating in a competitive market

Increases in interest rates

A) reduce borrowers' net worth. B) reduce lenders' net worth. C) increase the present value of borrowers' assets. D) raise the cost to businesses of internal funding.