Suppose Autonomous Investment Expenditures Decline Because of Higher Interest Rates

question 23

Multiple Choice

Suppose autonomous investment expenditures decline because of higher interest rates.How will this affect aggregate demand?  

• A) Aggregate demand will increase. 
• B) Aggregate demand will decrease. 
• C) Aggregate demand will remain the same. 
• D) Aggregate demand will become negative.

---

Definitions:

Primary

Original or main; typically refers to data or sources directly collected by the researcher.

Wildfire

A rapid, uncontrolled spread of fire across a natural area such as a forest, grassland, or prairie.

Primary Source

An original document or firsthand account of an event, used as a direct source of information about the topic.

External Criticism

a process in the evaluation of historical sources, focusing on the authenticity and origin of the document rather than its content.