An Increase in Business Investment at a Constant Price Level

question 103

Multiple Choice

An increase in business investment at a constant price level

• A)shifts the AE curve downward and decreases equilibrium expenditure.
• B)increases the slope of the AE curve and increases equilibrium expenditure.
• C)shifts the AE curve upward and increases equilibrium expenditure.
• D)decreases the slope of the AE curve and decreases equilibrium expenditure.
• E)has no effect on the AE curve.

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