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A Decrease in Investment Spending Because Companies Become More Pessimistic

Question 82

Multiple Choice

A decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to ________, everything else held constant.


A) up; rise
B) up; fall
C) down; rise
D) down; fall

Correct Answer:

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