An increase in autonomous investment in an economy will _____.
A)shift the aggregate expenditure line upward
B)shift the aggregate expenditure line downward
C)result in an upward movement along the aggregate expenditure line
D)result in a downward movement along the aggregate expenditure line
E)increase aggregate expenditures only at high levels of income

Question

Quizplus · Accepted Answer

An increase in autonomous investment will shift the aggregate expenditure line upward because it will increase the total planned expenditures in the economy at any given level of income. Autonomous investment is not influenced by the level of income, so it will cause an upward shift of the aggregate expenditure line.

An Increase in Autonomous Investment in an Economy Will _____