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Consider the Following News Headline: "Canadian Business Leaders Fear Reduced

Question 39

Multiple Choice

Consider the following news headline: "Canadian business leaders fear reduced world demand for commodities".Which of the following correctly describes the likely effect in our simple macro model?


A) The consumption function shifts upward.
B) The AE function shifts downward.
C) The investment function shifts upward.
D) The savings function shifts downward.
E) The AE function shifts upward.

Correct Answer:

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