If Aggregate Investment in an Economy Falls,which of the Following

question 55

Multiple Choice

If aggregate investment in an economy falls,which of the following is likely to happen?

• A) Asset prices will rise.
• B) Labor demand will increase.
• C) The revenue of firms in the economy will fall.
• D) The number of mortgage defaults will fall.

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Definitions:

Comparative Advantage

A principle that states a country or individual can produce a particular good or service at a lower opportunity cost than others.

Trade Patterns

The trends and tendencies in international trade, including what goods and services are traded, with whom, and in what direction.

Gain From Trade

The gain from trade refers to the increase in consumer and producer surplus that results from an open market, allowing countries or individuals to specialize in production and exchange.

Carrots

Commonly known as a root vegetable, orange in color, and widely used in cooking for its sweet flavor and nutritional value.