An increase in investment spending causes
A) a movement along the C + I + G + X - M curve and a shift of the aggregate demand curve.
B) a shift of the C + I + G + X - M curve and a movement along the aggregate demand curve.
C) a shift of the C + I + G + X - M curve but has no effect on the aggregate demand curve.
D) a shift of the C + I + G + X - M curve which causes the aggregate demand curve to shift.
Correct Answer:
Verified
Q101: Explain the relationship between real national income
Q102: Which of the following is a TRUE
Q103: What is the primary determinant of saving
Q104: A rise in the price level causes
A)an
Q105: Define the difference between the MPC and
Q107: What are the simplifying assumptions that are
Q109: What effect does a higher aggregate price
Q110: If society wants aggregate demand to increase
Q111: When disposal income is $50 million,consumption expenditure
Q253: Suppose the marginal propensity to consume is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents