If investment increases by $100, then the aggregate expenditure model concludes that equilibrium expenditure
A) increases by $100.
B) increases by less than $100.
C) decreases by $100.
D) remains unchanged.
E) increases by more than $100.
E
You might also like to view...
Refer to the figure above. What is the equilibrium quantity of credit when the credit demand curve is CD1 and the credit supply curve is CS1?
A) $50 B) $20 C) $40 D) $30
Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?
A) imports increase, domestic production increases, prices increase B) imports decrease, domestic production increases, prices increase C) imports decrease, domestic production increases, prices decrease D) imports increase, domestic production decreases, prices decrease
Producer groups tend to lobby for
A) price floors. B) price ceilings. C) quantity quotas. D) taxes.
When the fox is guarding the henhouse, that is an example of the
A) share-the-gains, share-the-pains theory. B) regulatory hypothesis. C) capture hypothesis. D) creative theory.