Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. Which of the following events causes the aggregate expenditures curve to shift upwards?
A) Foreign economies go into a recession and buy less domestically produced goods.
B) Households become more present oriented and decrease the autonomous component of saving.
C) Firms expect future profits to fall and cut investments accordingly.
D) The government cuts spending on healthcare.
Correct Answer:
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