A Decrease in Autonomous Expenditure Shifts the AE Curve

question 229

Multiple Choice

A decrease in autonomous expenditure shifts the AE curve

• A) downward and leaves its slope unchanged.
• B) downward and makes it steeper.
• C) downward and makes it flatter.
• D) upward and makes it steeper.

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Definitions:

Quasi-Contract

A legal concept where a court imposes a contractual obligation on one party to prevent unjust enrichment at the expense of another party.

Indemnity

A contractual obligation of one party to compensate for the loss or damage incurred by another party.

Wager

An agreement between two parties where the outcome of a specified event leads to the transfer of something of value from the loser to the winner.

Binding Contract

A legal agreement between parties that is enforceable by law, requiring all signatories to fulfill their respective obligations.