In the Short Run, the Most Important Consequence of a Decrease

question 47

Multiple Choice

In the short run, the most important consequence of a decrease in investment is a(n)

• A) increase in the capital stock.
• B) decrease in the capital stock.
• C) increase in aggregate demand.
• D) decrease in aggregate demand.

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Definitions:

Consistent

Characteristics or conditions that do not contradict each other and are in harmony.

Biconditional

A logical connective between statements where both conditions imply each other; typically phrased as "if and only if".

Equivalent Statements

Propositions that have the same truth value in every possible scenario.

Contradictory

Relating to statements, ideas, or propositions that directly oppose each other, such that if one is true, the other must be false.