On the Aggregate Expenditure Graph, Suppose Autonomous Investment Increases by $20

question 125

Multiple Choice

On the aggregate expenditure graph, suppose autonomous investment increases by $20 billion.What will be the effect on the aggregate expenditure line?  

• A) The aggregate expenditure line will shift upward by $20 billion. 
• B) The aggregate expenditure line will stay the same. 
• C) The aggregate expenditure line will shift downward by $20 billion. 
• D) The aggregate expenditure line will first shift upward, and then it will shift downward by $20 billion.

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