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In the Keynesian Cross Diagram,a Decrease in Investment Spending Because

Question 93

Multiple Choice

In the Keynesian cross diagram,a decrease in investment spending because companies become more pessimistic 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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