In the Income-Expenditure Model, If Autonomous Saving Decreases by $15

question 11

Multiple Choice

In the income-expenditure model, if autonomous saving decreases by $15 billion, _____

• A) the aggregate expenditure line shifts upward by $15 billion.
• B) planned investment increases by $15 billion.
• C) the aggregate expenditure line shifts downward by $15 billion.
• D) planned investment decreases by $15 billion.
• E) the equilibrium level of real GDP demanded decreases by $15 billion.

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Definitions:

Limited

A form of corporate structure whereby the shareholders' liability is limited to the capital they have invested in the company.

Consolidation Adjustments

Adjustments made to combine the financial statements of parent and subsidiary companies into a single set of financial statements.

Non-Controlling Interest

A financial concept referring to a minority ownership in a company, holding less than 50% of the stock.

Inventory Transfers

Inventory transfers involve the movement of inventory items from one location to another, which may affect inventory levels, valuations, and accounting records.