Which of the following events would cause the aggregate expenditure line to shift upward? Select all that apply. 1 The stock market rises. 2 Income taxes rise. 3 Expectations about future income prospects become more rosy. 4 The real interest rate rises. 5 Transfer payments increase 6 Rising incomes in Europe cause net exports to rise.
Which of the following events would cause the aggregate expenditure line to shift upward? Select all that apply. 1 The stock market rises. 2 Income taxes rise. 3 Expectations about future income prospects become more rosy. 4 The real interest rate rises. 5 Transfer payments increase 6 Rising incomes in Europe cause net exports to rise.
Chapter23: The Aggregate Expenditure Model
Section: Chapter Questions
Problem 3P
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Question
Which of the following events would cause the aggregate expenditure line to shift upward? Select all that apply.
| 1 |
The stock market rises. |
|
| 2 |
Income taxes rise. |
|
| 3 |
Expectations about future income prospects become more rosy. |
|
| 4 |
The real interest rate rises. |
|
| 5 |
Transfer payments increase |
|
| 6 |
Rising incomes in Europe cause net exports to rise. |
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