If Planned Investment Spending Increases, the Planned Aggregate Spending Line

question 40

Multiple Choice

If planned investment spending increases, the planned aggregate spending line:

• A) becomes flatter.
• B) shifts down.
• C) becomes steeper.
• D) shifts up.

---

Definitions:

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all income and expenses except interest and income tax expenses.

Income Statement

A financial statement that shows a company's income and expenses over a specific period, culminating in net profit or loss.

After-Tax Income

The amount of income an individual or corporation retains after all applicable taxes have been deducted.

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.