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In the Aggregate Expenditures Model, It Is Assumed That the Planned

Question 28

Multiple Choice

In the aggregate expenditures model, it is assumed that the planned investment:


A) automatically changes in response to changes in the current level of real domestic output.
B) changes by less in percentage terms than changes in the level of real domestic output.
C) does not respond to changes in interest rates.
D) does not change when the level of real domestic output changes.

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