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In the Keynesian Cross Diagram,an Increase in Investment Spending Because

Question 6

Multiple Choice

In the Keynesian cross diagram,an increase in investment spending because companies become more optimistic 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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