An Increase in Planned Real Investment Spending Causes

question 269

Multiple Choice

An increase in planned real investment spending causes

• A) a movement along the C + I + G + X curve and a shift of the aggregate demand curve.
• B) a shift of the C + I + G + X curve and a movement along the aggregate demand curve.
• C) a shift of the C + I + G + X curve but has no effect on the aggregate demand curve.
• D) a shift of the C + I + G + X curve that causes the aggregate demand curve to shift.

---

Definitions:

Common Fixed Expenses

Regular, unchanged expenses that a business incurs, regardless of the level of production or sales volume.

Break-even

The point at which total costs and total revenue are equal, indicating that a business makes neither a profit nor a loss.

Sales Dollars

The total revenue generated from goods or services sold by a company, measured in dollar terms.

Common Fixed Expenses

Expenses that remain constant for a business across different projects, products, or divisions and do not change with the level of production or sales.