Which of the Following Would Result from a Decrease in Autonomous

question 53

Multiple Choice

Which of the following would result from a decrease in autonomous saving?

• A)an upward shift of the aggregate expenditure line
• B)an upward shift of the 45-degree line
• C)a decrease in the equilibrium level of real GDP demanded
• D)an increase in the level of autonomous consumption
• E)an increase in the level of autonomous investment

---

Definitions:

Eurocurrency

Money deposited in a financial centre outside the country whose currency is involved.

Currency Swap

An agreement between two parties to exchange the principal amount and interest in two different currencies.

Spot Market

A market where financial instruments or commodities are traded for immediate delivery.

Expected Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, as anticipated by consumers, investors, and economists.