In the Income-Expenditure Model,if Autonomous Investment Decreases by $10 Billion,_____

question 114

Multiple Choice

In the income-expenditure model,if autonomous investment decreases by $10 billion,_____.

• A)the aggregate expenditure line shifts upward by $10 billion
• B)planned saving increases by $10 billion
• C)the aggregate expenditure line shifts downward by $10 billion
• D)planned saving decreases by $10 billion
• E)the equilibrium level of real GDP demanded increases by $10 billion

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Definitions:

Short-term Credit

Credit facilities, such as loans or lines of credit, that are due for repayment within a short period, typically less than one year.

Interest Costs

The expense incurred by an entity for borrowed funds, usually expressed as an annual percentage rate.

Long-term Debt

Financial obligations of a company or individual that are due after a period of one year or more.

Trade Credit

Debt arising from credit sales and recorded as an account receivable by the seller and as an account payable by the buyer.