Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 50

Multiple Choice

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

• A) Firms become optimistic about future profits and increase investment spending.
• B) The government reduces property tax rates.
• C) The government cuts spending on education.
• D) Households save a greater portion of any change in disposable income.

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Definitions:

Bat-pollinated

Refers to plants that are primarily pollinated by bats, a process crucial for the reproductive success of certain plant species.

Night-blooming

Night-blooming characterizes plants that open their flowers or become active during the night, often for reasons such as attracting specific pollinators or conserving water.

Pollinator

An organism that moves pollen from the male anthers of a flower to the female stigma to achieve fertilization and produce seeds.

Floral Attraction

involves mechanisms or features of flowers that attract pollinators, such as color, scent, or nectar rewards.