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Using the Standard 45° Line Diagram, How Does a Decrease

Question 125

Multiple Choice

Using the standard 45° line diagram, how does a decrease in investment spending effect the expenditure schedule?


A) It increases the slope of the expenditure schedule.
B) It decreases the slope of the expenditure schedule.
C) It shifts the expenditure schedule downward.
D) It shifts the expenditure schedule upward.

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