Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 182

Multiple Choice

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

• A) a decrease in taxes
• B) an increase in imports
• C) an increase in government spending
• D) an increase in investment

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Definitions:

Syllogism

A deductive argument presented in the form of two supporting premises and a conclusion.

Deductive Argument

A claim that asserts its outcome is an inevitable result of the presented premises.

Inductive Argument

A reasoning that suggests its outcome likely results from the initial assertion.

Sound Argument

An argument that is both valid (correctly structured) and has all true premises.