Using Figure 2 above, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE1 might be:
A) wealth level decreases.
B) interest rates decrease.
C) expected profitability of investments increase.
D) domestic income decreases.

Question

Using Figure 2 above, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE1 might be:
A) wealth level decreases. 
B) interest rates decrease. 
C) expected profitability of investments increase. 
D) domestic income decreases.

Quizplus · Accepted Answer

The Answer of  Using Figure 2 above, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE1 might be:
A) wealth level decreases. 
B) interest rates decrease. 
C) expected profitability of investments increase. 
D) domestic income decreases.

Using Figure 2 Above, Suppose That the Economy Started at PAE2