Use the Information Below to Answer the Following Questions

question 70

Multiple Choice

Use the information below to answer the following questions.
Fact 30.3.1 Growth Forecast Through 2016
With low interest rates, business investment and trade are expected to bring growth through 2016.
Source: TD Economics, September 25, 2014
-Consider Fact 30.3.1. An increase in business investment

• A)may increase or decrease aggregate demand depending on the effect on government expenditure.
• B)increases aggregate planned expenditure, which increases income and induces an increase in government expenditure.
• C)increases aggregate planned expenditure, which increases income and induces an increase in consumption expenditure.
• D)increases aggregate planned expenditure only if the economy has a recessionary gap.
• E)creates a movement up along the aggregate demand curve.

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Definitions:

Temperature

A measure of the warmth or coldness of an environment or object, expressed in degrees.

Causally Related

A connection between two events where one directly impacts or brings about the other.

Predictability

The degree to which a future event or outcome can be accurately foreseen based on current knowledge or past events.

Correlations

Statistical measures that indicate the extent to which two or more variables fluctuate together.