An Increase in the Aggregate Expenditures Schedule

Multiple Choice

An increase in the aggregate expenditures schedule:

A) Increases aggregate demand by the amount of the increase in aggregate expenditures only
B) Increases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier
C) Decreases aggregate demand by the amount of the increase in aggregate expenditures
D) Decreases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier