When investment increases,the ________ in aggregate demand is ________ the change in investment.
A)decrease;the same as
B)increase;greater than
C)decrease;greater than
D)increase;the same as
E)increase;smaller than

Question

Quizplus · Accepted Answer

When investment increases, it leads to an increase in aggregate demand. The increase in aggregate demand is greater than the change in investment because the multiplier effect amplifies the initial increase in spending.

When Investment Increases,the ________ in Aggregate Demand Is ________ the Change

When Investment Increases,the in Aggregate Demand Is the Change