An Increase in the Aggregate Expenditures Schedule

question 133

Multiple Choice

An increase in the aggregate expenditures schedule:

• A) Increases aggregate demand by the amount of the increase in aggregate expenditures only
• B) Increases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier
• C) Decreases aggregate demand by the amount of the increase in aggregate expenditures
• D) Decreases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier

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