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.

---

Definitions:

Investee

A company in which another entity has invested, granting the investor a level of influence or control over its operations.

Related Expense

Costs that are directly connected to or a result of a specific business activity or operation.

Subsidiary Contract

An agreement or contract involving a company that is controlled by another parent company.

Initial Value Method

An accounting practice for investment recording wherein the investment is kept at its original cost on the balance sheet without adjusting for changes in net income of the investee.