Which of the following would not shift the expenditure line?
A)An increase in government spending to finance a war
B)An increase in investment
C)A decrease in net exports brought about by an appreciation of the dollar
D)of these would shift the expenditures curve.

Question

Quizplus · Accepted Answer

The expenditure line in macroeconomics represents the total spending in an economy at different levels of income. It shifts when there is a change in autonomous spending, which includes components like government spending, investment, and net exports. Options A, B, and C all describe changes in these components, which would indeed shift the expenditure line. Therefore, the statement that none of these would shift the expenditures curve is incorrect, making D the correct choice as it inaccurately suggests that these factors would not cause a shift.

Which of the Following Would Not Shift the Expenditure Line