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    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
  5. Question
    If Investment Increases by $100, Then the Aggregate Expenditure Model
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If Investment Increases by $100, Then the Aggregate Expenditure Model

Question 229

Question 229

Multiple Choice

If investment increases by $100, then the aggregate expenditure model concludes that equilibrium expenditure


A) increases by $100.
B) increases by less than $100.
C) increases by more than $100.
D) remains unchanged.
E) decreases by $100.

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