Multiple Choice
An increase in the aggregate expenditures schedule
A) increases aggregate demand by the amount of the increase in aggregate expenditures only.
B) increases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier.
C) decreases aggregate demand by the amount of the increase in aggregate expenditures.
D) decreases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier.
Correct Answer:
Verified
Correct Answer:
Verified
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