How Will an Increase in Autonomous Investment Affect the Aggregate

question 39

Multiple Choice

How will an increase in autonomous investment affect the aggregate expenditure line?  

• A) It will shift the aggregate expenditure line upward. 
• B) It will shift the aggregate expenditure line downward. 
• C) It will result in an upward movement along the aggregate expenditure line. 
• D) It will result in a downward movement along the aggregate expenditure line.

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Definitions:

Inventory Increase

This occurs when there is a rise in the quantity or value of goods held by a company, signaling a buildup of stock.

Amortization of Patents

The systematic reduction of the financial value of a patent over its useful life, reflecting its consumption and obsolescence.

Gain on Sale

An increase in funds resulting from selling an asset for more than its carrying amount on the balance sheet.

Decrease in Inventories

A reduction in the quantity or value of the inventory on hand, which may result from sales, usage, spoilage, or obsolescence.