In the Keynesian Cross Diagram,a Decline in Autonomous Consumer Expenditure

question 113

Multiple Choice

In the Keynesian cross diagram,a decline in autonomous consumer expenditure causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to ________,everything else held constant.

• A)up;rise
• B)up;fall
• C)down;rise
• D)down;fall

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Definitions:

Financing Activities

Refers to transactions and business events affecting long-term liabilities and equity, including obtaining resources from owners and providing them with a return on their investment.

Bonds Payable

Bonds payable refers to the long-term debt instruments issued by a company to borrow funds, which must be repaid at a specified maturity date.

Issuing

The act of distributing something, such as a company releasing new shares of stock to the public or a government agency providing official documents.

Operating Activity

Transactions that relate to the primary operations of a company, such as sales revenue and expense activities.