In the aggregate expenditures model, which of the following would cause the aggregate expenditures curve to decrease?
A) Disposable income increases.
B) Business expectations become more pessimistic.
C) Net wealth increases.
D) Interest rates decrease.

Question

Quizplus · Accepted Answer

Business expectations becoming more pessimistic can lead to a decrease in investment spending, which would cause the aggregate expenditures curve to shift downwards.

In the Aggregate Expenditures Model, Which of the Following Would