In the Aggregate Expenditures Model, It Is Assumed That the Planned

question 24

Multiple Choice

In the aggregate expenditures model, it is assumed that the planned investment:

• A)automatically changes in response to changes in the current level of real domestic output.
• B)changes by less in percentage terms than changes in the level of real domestic output.
• C)does not respond to changes in interest rates.
• D)does not change when the level of real domestic output changes.

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