When Compared to a Simple Macroeconomic Model (With Only Consumption

question 19

Multiple Choice

When compared to a simple macroeconomic model (with only consumption and investment) ,adding government and foreign trade to the AE function causes

• A)the autonomous component of AE to increase.
• B)the autonomous component of AE to fall.
• C)the AE function to become downward sloping.
• D)the AE function to become perfectly horizontal.
• E)no change in the AE function.

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