Multiple Choice
When compared to a simple macroeconomic model (with only consumption and investment) ,adding government and foreign trade to the AE function causes
A) the autonomous component of AE to increase.
B) the autonomous component of AE to fall.
C) the AE function to become downward sloping.
D) the AE function to become perfectly horizontal.
E) no change in the AE function.
Correct Answer:
Verified
Correct Answer:
Verified
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