In the Keynesian Cross Diagram,a Decrease in Investment Spending Because

question 104

Multiple Choice

In the Keynesian cross diagram,a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________,the equilibrium level of aggregate output to fall,and the IS curve to shift to the ________,everything else held constant.

• A)up;left
• B)up;right
• C)down;left
• D)down;right

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Definitions:

Drawer

In the context of banking and finance, a drawer is the person who writes or issues a check, directing a bank to pay the stated amount from the drawer's account.

Payee

The individual or entity to whom money is payable or is meant to be paid, typically named in financial documents like checks or promissory notes.

Certification

Of a cheque, an understanding by a bank to pay the amount of a cheque on presentation.

Endorsement

The act of signing one's name on the back of a check or other negotiable instrument or the addition of a provision to an insurance policy, altering its coverage.