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In the Income-Expenditure Model, If Autonomous Saving Decreases by $15

Question 11

Multiple Choice

In the income-expenditure model, if autonomous saving decreases by $15 billion, _____


A) the aggregate expenditure line shifts upward by $15 billion.
B) planned investment increases by $15 billion.
C) the aggregate expenditure line shifts downward by $15 billion.
D) planned investment decreases by $15 billion.
E) the equilibrium level of real GDP demanded decreases by $15 billion.

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