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An increase in planned investment spending causes aggregate output to ______. -

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Question

An increase in planned investment spending causes aggregate output to ______.

Options

  • increase by an amount equal to the change in investment spending.

  • increase by an amount less than the change in investment spending.

  • increase by an amount greater than the change in investment spending.

  • decrease by an amount less than the change in investment.

MCQ
Fill in the Blanks

Solution

An increase in planned investment spending causes aggregate output to increase by an amount equal to the change in investment spending.

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Aggregate Demand and Its Components - Investment
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