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An Increase in Investment Spending Caused by Higher Expected Rates

Question 43

Multiple Choice

An increase in investment spending caused by higher expected rates of return will


A) shift the aggregate supply curve to the left.
B) move the economy up along an existing aggregate demand curve.
C) shift the aggregate expenditures curve downward and the aggregate demand curve to the left.
D) shift the aggregate expenditures curve upward and the aggregate demand curve to the right.

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