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

Question 2

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 ________,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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