Which of the Following Events Would Cause the AE Function

question 6

Multiple Choice

Which of the following events would cause the AE function to shift upwards in a parallel way?

• A)an increase in the MPC
• B)a decrease in the net tax rate
• C)a decrease in the business confidence of firms
• D)a decrease in foreign income
• E)a decrease in the aggregate price level

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Definitions:

Target Market

A specific group of consumers at which a company aims its products and services.

Profit

The financial gain obtained when the revenue from business operations exceeds the expenses, taxes, and costs associated with running the business.

Skilled Employees

Workers who possess specialized training, knowledge, or expertise, making them valuable assets to organizations in achieving operational efficiency and competitive advantage.

Local Banker

A banking professional operating within a community, offering financial services and advice to local residents and businesses.