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Consider the Following News Headline: "Canadian Business Leaders Fear Reduced

Question 89

Multiple Choice

Consider the following news headline: "Canadian business leaders fear reduced world demand for commodities".Which of the following correctly describes the likely effect in our simple macro model?


A) the investment function shifts downward
B) the AE function shifts downward
C) the investment function shifts upward
D) the savings function shifts downward
E) both A and B are correct

Correct Answer:

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