When Investment Increases, the _{--------------------}in Aggregate Demand Is the Change

question 134

Multiple Choice

When investment increases, the _{--------------------}in aggregate demand is the change in_{--------------------} lnvestment.

• A)increase; greater than
• B)decrease; greater than
• C)increase; smaller than
• D)increase; the same as
• E)decrease; the same as

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Definitions:

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal amount.

Principal

This term refers to the original sum of money borrowed in a loan or the initial amount of investment before earnings or losses.

Expansionary Gap

A situation where the output of an economy is greater than the full employment output, often leading to inflation.