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      Question

      A decrease in planned investment spending causes

      aggregate output to;
      A decrease by an amount equal to the change in investment spending. Correct Answer Incorrect Answer
      B increase by an amount less than the change in investment spending. Correct Answer Incorrect Answer
      C increase by an amount greater than the change in investment spending. Correct Answer Incorrect Answer
      D decrease by an amount less than the change in investment Correct Answer Incorrect Answer
      E none of these Correct Answer Incorrect Answer

      Solution

      A decrease in planned investment spending causes aggregate output to decrease by an amount equal to the change in investment spending

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