Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. Which of the following events causes the aggregate expenditures curve to shift downwards?

A) Firms become optimistic about future profits and increase investment spending.
B) The government reduces property tax rates.
C) The government cuts spending on education.
D) Households save a greater portion of any change in disposable income.