Question

In the aggregate expenditures model, it is assumed that investment
A) does not change when real GDP changes B) does not respond to changes in interest rates C) changes by less in percentage terms than changes in real GDP D) automatically changes in response to changes in real GDP

Answer 1

Answer:

Here is your answer

Explanation:

In the aggregate expenditures model, it is assumed that investment does not change when real GDP changes. (Option A).

In the aggregate expenditures model, it is assumed that investment: does not change when real GDP changes. All else equal, a large decline in the real interest rate will shift the: investment schedule upward.

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