How Does an Increase in Government Spending Affect the Aggregate

question 95

Multiple Choice

How does an increase in government spending affect the aggregate expenditure line?

• A)It shifts the aggregate expenditure line upward.
• B)It shifts the aggregate expenditure line downward.
• C)It increases the slope of the aggregate expenditure line.
• D)It decreases the slope of the aggregate expenditure line.
• E)It shifts the aggregate expenditure line upward and increases its slope.

Understand the conditions required for a cash flow series to be considered an annuity.

Distinguish between different types of annuities and apply appropriate formulas for their valuation.

Understand the concept of time value of money.

Calculate the present value and future value of single sums and annuities.

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