An Increase in Investment and Government Spending Can Be Expected

question 129

Multiple Choice

An increase in investment and government spending can be expected to shift the:

• A) Aggregate expenditures curve downward and the aggregate demand curve leftward
• B) Aggregate expenditures curve upward and the aggregate demand curve leftward
• C) Aggregate expenditures curve downward and the aggregate demand curve rightward
• D) Aggregate expenditures curve upward and the aggregate demand curve rightward

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Operating Activities

Transactions related to the primary business operations, like selling goods or services and other core business activities, reflected in the company's cash flow.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Capital Expenditures

Long-term investments in physical assets such as property, plants, and equipment.