An increase in investment demanded will shift the aggregate demand curve to the right by an amount equal to the _________.
A) (∆I) where ∆I = change in investment
B) (MPC * ∆I) where MPC = marginal propensity to consume
C) (Im * ∆I) where Im = investment spending multiplier
D) (Mm * ∆I) where m = money multiplier
Correct Answer:
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