An Increase in Autonomous Aggregate Expenditures

question 71

Multiple Choice

An increase in autonomous aggregate expenditures

• A) causes a movement along the aggregate expenditures curve.
• B) causes a movement along the aggregate demand curve.
• C) increases the value of the multiplier.
• D) shifts the aggregate demand curve to the right.

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Definitions:

Warranty Costs

Expenses incurred by a company due to servicing or replacing products under warranty.

Premium Expense

The cost associated with purchasing insurance policies, which may be recognized periodically as an expense in financial statements.

Coupon Redemption

The process of a bond investor submitting a coupon to the issuer to receive the interest payment due.

Cheese Plate

A selection of cheeses often served as an appetizer or dessert, typically accompanied by crackers, fruit, or nuts.