Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 50

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. Which of the following events causes the aggregate expenditures curve to shift downwards?

• A) Firms become optimistic about future profits and increase investment spending.
• B) The government reduces property tax rates.
• C) The government cuts spending on education.
• D) Households save a greater portion of any change in disposable income.

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Toddlerhood

The stage of human development that occurs roughly between the ages of one and three and is marked by rapid growth and learning.

Metaphorical Language

The use of figures of speech that imply a comparison or representation of one thing by another, enhancing communication and understanding.

Deferred Imitation

The imitation of an action observed in the past.

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