Multiple Choice
How does a decrease in government spending affect the aggregate expenditure line?
A) It shifts the aggregate expenditure line upward.
B) It shifts the aggregate expenditure line downward.
C) It increases the slope of the aggregate expenditure line.
D) It decreases the slope of the aggregate expenditure line.
E) It has no effect on the aggregate expenditure line.
Correct Answer:
Verified
Correct Answer:
Verified
Q48: C = 2,550 + (MPC)Y<br>I = 800<br>G
Q215: Equations for C, I, G, and NX
Q216: Figure 8.6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 8.6
Q217: If the consumption function is defined as
Q218: Figure 8.7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 8.7
Q219: A decrease in the real interest rate
Q221: If inflation in Canada is lower than
Q222: Consumption spending is $5 million, planned investment
Q224: If the consumption function is defined as
Q225: A/an _ in taxes will decrease consumption