In the Keynesian Cross Diagram,a Decrease in Investment Spending Because

question 104

Multiple Choice

In the Keynesian cross diagram,a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________,the equilibrium level of aggregate output to fall,and the IS curve to shift to the ________,everything else held constant.

• A)up;left
• B)up;right
• C)down;left
• D)down;right

---

Definitions:

Smoking Cessation

The process of discontinuing tobacco smoking, which can significantly reduce the risks of developing smoking-related diseases.

Post-traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Flashbacks

Sudden, intense re-experiences of past traumatic events that feel as though they are happening in the present moment.

Earthquake

A sudden violent shaking of the ground, typically caused by movements within the earth's crust or volcanic action.