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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Definitions:

Share Draft Account

A type of checking account in credit unions that allows the account holder to access funds through checks (drafts) or electronic means.

Checking Account

Money stored in an account at a bank or other financial institution that can be withdrawn without advance notice; also called a demand deposit.

Credit Union

A member-owned financial cooperative that provides traditional banking services, like loans and savings accounts, with profits returning to members in the form of reduced fees and higher savings rates.