What Shift Would Result from a Decrease in Planned Investment

question 2

Multiple Choice

What shift would result from a decrease in planned investment?  

• A) The aggregate demand curve would shift outward. 
• B) The aggregate demand curve would shift inward. 
• C) The aggregate supply curve would shift inward. 
• D) The aggregate supply curve would shift outward.

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Definitions:

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.

Loans

Money, goods, or services provided to an individual or entity with the expectation of repayment over time with interest.

Interest Rates

The cost of borrowing money, typically expressed as an annual percentage of the loan amount.

Savers

Individuals or entities that set aside a portion of their income for future use, often by depositing it in financial accounts.