A decrease 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)decrease aggregate expenditures only at low levels of income

Question

Quizplus · Accepted Answer

A decrease in autonomous investment reduces overall spending, causing the aggregate expenditure line to shift downward.

A Decrease in Autonomous Investment Will