In a Simple Macro Model with the Price Level Assumed

question 65

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

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