Refer to the Diagram for a Private Closed Economy $\left( \mathrm { C } + I _ { g } \right) _ { 1 }$

question 32

Multiple Choice

Refer to the diagram for a private closed economy. The upward shift of the aggregate expenditures schedule from $\left( \mathrm { C } + I _ { g } \right) _ { 1 }$ to $\left( \mathrm { C } + I _ { g } \right) _ { 2 }$ reflects

• A) an increase in investment expenditures.
• B) a decrease in consumption expenditures.
• C) an increase in the MPC.
• D) an increase in the APS.

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