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An Increase in Investment Spending Because Companies Become More Optimistic

Question 91

Multiple Choice

An increase in investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to rise, and the IS curve to shift to the ________, everything else held constant.


A) up; left
B) up; right
C) down; left
D) down; right

Correct Answer:

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