If Investment Increases ,Which of the Following Happens

question 168

Multiple Choice

If investment increases ,which of the following happens?
i. aggregate expenditure increases
ii. real GDP increases
iii. consumption expenditure decreases

• A) i and ii
• B) i only
• C) ii only
• D) ii and iii
• E) i, ii, and iii

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Definitions:

Income

The financial gain received by an individual or entity, often measured as salary, wages, or profits.

Perfect Equality Line

A hypothetical line on a graph representing a situation where everyone has exactly the same income or wealth, demonstrating absolute equality.

Points

In various contexts, points can refer to units of measurement, aspects of discussion, or rewards accumulated from transactions.

Straight Line

The shortest distance between two points, often used to describe a method of linear depreciation in accounting.