An Increase in Investment Demanded Will Shift the Aggregate Demand

question 110

Multiple Choice

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

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