Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 40

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. Which of the following causes the aggregate expenditures curve to shift upwards?

• A) an increase in taxes
• B) an increase in exports
• C) a decrease in the national debt
• D) a decrease in interest rate

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Definitions:

Accounting Standards

are authoritative standards for financial reporting and are the primary source of generally accepted accounting principles (GAAP).

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of rules and standards used in the United States for financial reporting.

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