If Investment Spending Increases by $1 Million, Then the Aggregate

question 112

Multiple Choice

If investment spending increases by $1 million, then the aggregate demand curve shifts

• A)leftward by more than $1 million.
• B)rightward by $1 million.
• C)rightward by more than $1 million.
• D)leftward by less than $1 million.
• E)rightward by less than $1 million.

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Definitions:

Double-Declining-Balance

An accelerated method of depreciation which doubles the straight-line depreciation rate, applying it to the declining balance of the asset's cost.

Depreciation Journal Entry

An accounting record that reflects the allocation of the cost of a tangible asset over its useful life.

Depreciable Cost

The total cost of an asset that is subject to depreciation over its useful life, excluding salvage value.

Double-Declining-Balance Rate

A method of accelerated depreciation which doubles the rate at which an asset’s book value is depreciated compared to straight-line depreciation.