An Increase in Investment Spending Caused by Higher Expected Rates

question 43

Multiple Choice

An increase in investment spending caused by higher expected rates of return will

• A) shift the aggregate supply curve to the left.
• B) move the economy up along an existing aggregate demand curve.
• C) shift the aggregate expenditures curve downward and the aggregate demand curve to the left.
• D) shift the aggregate expenditures curve upward and the aggregate demand curve to the right.

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