The Following Would Cause an Upward Shift in the C

question 153

Multiple Choice

The following would cause an upward shift in the C + I + G + X curve EXCEPT

• A) an increase in disposable income.
• B) an increase in export spending.
• C) a decrease in import spending
• D) an increase in household wealth.

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Definitions:

Interest Capitalization

The process of adding interest that has accumulated on a loan to the principal balance of the loan, effectively increasing the total amount owed.

Borrowed

Refers to funds or resources obtained through a loan or credit that must be repaid in the future, often with interest.

Diesel Engine

A type of internal combustion engine that operates using the diesel cycle, characterized by high fuel efficiency and use of diesel fuel.