The Aggregate Expenditure Curve Will Become Steeper If

question 5

Multiple Choice

The aggregate expenditure curve will become steeper if

• A)people become thriftier.
• B)people show an increased preference for foreign-made products.
• C)firms expect an increase in future profit.
• D)income tax rates are lowered.
• E)income tax rates are raised.

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Definitions:

Payment

The act of giving money or other compensation to settle a debt or obligation.

Certified Checks

Checks guaranteed by a bank, verifying that the signer has enough funds in their account to cover the amount specified on the check.

Dishonored

In financial terms, a dishonored instrument (like a check) refers to one that cannot be processed because the payor's account lacks sufficient funds or is closed.

Liability

The state of being legally responsible for something, particularly for debts or legal obligations.