Which of the following statements represents a correct and sequentially accurate economic explanation?
A) The (U.S.)dollar appreciates,net exports rise,total expenditures on goods and services rises,AD rises,and the AD curve shifts rightward.
B) The interest rate falls,investment rises,total expenditures on goods and services rises,AD falls,and the AD curve shifts leftward.
C) Wealth increases,consumption rises,total expenditures on goods and services rises,AD falls,and the AD curve shifts rightward.
D) (Business)expectations about future sales become more positive,investment rises,total expenditures on goods and services rises,AD rises,and the AD curve shifts rightward.
E) Foreign real national income rises,net exports rise,total expenditures on goods and services falls,AD rises,and the AD curve shifts rightward.

Question

Quizplus · Accepted Answer

Business expectations about future sales becoming more positive leads to an increase in investment, which in turn leads to an increase in total expenditures on goods and services. This increase in spending leads to an increase in aggregate demand (AD) and shifts the AD curve rightward.

Which of the Following Statements Represents a Correct and Sequentially