Author Question: If the level of autonomous spending in an economy increases at a given price level, _____. a. the ... (Read 74 times)

casperchen82 · **on:** Jun 30, 2018

If the level of autonomous spending in an economy increases at a given price level, _____.
a. the aggregate expenditure line shifts upward and the economy moves upward along the aggregate demand curve
b. the aggregate expenditure line shifts downward and the economy moves upward along the aggregate demand curve
c. the aggregate expenditure line shifts upward and the aggregate demand curve shifts to the right
d. the aggregate expenditure line shifts downward and the aggregate demand curve shifts to the left
e. the aggregate expenditure curve shifts upward and the aggregate demand curve shifts to the left

Question 2

Banks create money when they make loans.
a. True
b. False
Indicate whether the statement is true or false