In a Simple Macro Model with the Price Level Assumed

question 97

Multiple Choice

In a simple macro model with the price level assumed to be constant,a change in firms' level of desired investment is predicted to influence equilibrium national income by

• A)shifting the saving function.
• B)shifting the consumption function.
• C)shifting the aggregate expenditure function.
• D)causing movement along the investment function.
• E)shifting the 45-degree line.

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