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Which of the Following Events Shifts the Aggregate Expenditure Curve

question 166

Multiple Choice

Which of the following events shifts the aggregate expenditure curve and also shifts the aggregate demand curve?
I. a decrease in investment
II. a change in the price level
III. an increase in exports


Definitions:

Financial Leverage

The action of using debt to magnify the expected return on an investment.

Operating Income

Income from a company's main business activities, excluding deductions for interest and taxes, showing the profitability from core operations.

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

EPS

Earnings per share, a company's net profit divided by the number of its outstanding shares, indicating profitability.

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