An increase in autonomous investment will
A)shift the aggregate expenditure line upward
B)shift the aggregate expenditure line downward
C)result in an upward movement along the aggregate expenditure line
D)result in a downward movement along the aggregate expenditure line
E)increase aggregate expenditures only at high levels of income

Question

Quizplus · Accepted Answer

Autonomous investment is a component of aggregate expenditure, so an increase in autonomous investment will increase total aggregate expenditure. This means that the aggregate expenditure line will shift upward.

An Increase in Autonomous Investment Will