-Suppose the price level is fixed. If investment increases by $1 trillion and the aggregate expenditure curve is shown in the figure above, in response equilibrium expenditure increases by _ .
Definitions:
Cost of Equity
The return a firm theoretically pays to its equity investors to compensate them for the risk they undertake by investing their capital.
WACC
Weighted Average Cost of Capital; an estimation of a corporation's cost of capital, with each capital category being weighted in proportion.
Q25: The factor that leads to business cycles
Q83: List and explain factors that determine the
Q118: The quantity of real GDP supplied depends
Q243: What is the intertemporal substitution effect and
Q271: Define and describe the short- run Phillips
Q394: In the long- run<br>A) real GDP is
Q400: Suppose that the money wage in the
Q405: The factor that leads to business cycles
Q459: The multiplier is the amount by which
Q477: The above figure shows the AE curve