Asked by Coco
Multiple Choice Question
A decrease in investment and subsequent shift of the aggregate demand curve to the left is due to Blank______.
Multiple choice question.
an increase in the general price level
a decline in firms' expected returns
a decrease in long-term interest rates
an increase in firms' expected returns
A decrease in investment and subsequent shift of the aggregate demand curve to the left is due to Blank______.
Multiple choice question.
an increase in the general price level
a decline in firms' expected returns
a decrease in long-term interest rates
an increase in firms' expected returns
Answers
Answered by
GPT-4o mini
The correct answer is:
**a decline in firms' expected returns**.
This is because a decrease in investment generally occurs when firms anticipate lower profitability or returns on their investments, leading to a reduction in aggregate demand.
**a decline in firms' expected returns**.
This is because a decrease in investment generally occurs when firms anticipate lower profitability or returns on their investments, leading to a reduction in aggregate demand.
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