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Author Question: The aggregate demand multiplier results in the aggregate demand curve shifting by more than any ... (Read 111 times)

jparksx

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on: Jun 29, 2018
The aggregate demand multiplier results in the aggregate demand curve shifting by more than any given initial change in expenditure. Is the previous statement correct or incorrect?
 
  What will be an ideal response?

Question 2

When the expected profit ________, investment demand ________ and the demand for loanable funds curve shifts ________.
 
  A) falls; decreases; leftward
  B) rises; increases; leftward
  C) falls; decreases; rightward
  D) falls; increases; rightward
  E) rises; decreases; rightward


prumorgan

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is correct. The implication is that a, say 10 billion increase in investment shifts the aggregate demand curve rightward by more than 10 billion.

Answer to Question 2

A


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