Which of the Following Events Would Cause the AE Function

question 65

Multiple Choice

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

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

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Definitions:

Telecommunications Companies

Organizations that provide services related to electronic communication such as telephone, internet, and television broadcasting.

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The introduction of new ideas, methods, or products to improve efficiency, effectiveness, or competitive advantage in a business setting.

Lack of Management Experience

A common challenge faced by businesses, particularly small and start-up companies, where the management team lacks the experience to make informed decisions and strategies.

Marketing Expertise

The specialized knowledge and skills in creating and implementing strategies to promote products or services effectively.