Using Figure 2 Above, Suppose That the Economy Started at PAE2

question 113

Multiple Choice

Using Figure 2 above, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE3 might be:

• A) wealth level decreases.
• B) interest rates decrease.
• C) expected profitability of investments decrease.
• D) domestic income increases.

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