Multiple Choice
-Suppose the price level is fixed.If investment increases by $1 trillion and the aggregate expenditure curve is shown in the figure above,in response equilibrium expenditure increases by ________.
A) $1 trillion.
B) $3 trillion.
C) less than $1 trillion.
D) None of the above answers are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q9: As disposable income increases, consumption expenditures<br>A) increase
Q23: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5273/.jpg" alt=" -In the above
Q34: What does the marginal propensity to consume
Q37: When disposable income equals $800 billion, planned
Q110: If the slope of the AE curve
Q198: Autonomous consumption<br>A) increases with income.<br>B) is independent
Q233: If there are no taxes or imports
Q346: Suppose that the slope of the AE
Q427: In general, the flatter the aggregate expenditure
Q455: A movement along the saving function occurs