In the Keynesian cross diagram, an increase in investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to rise, and

the IS curve to shift to the ________, everything else held constant. A) up; left
B) up; right
C) down; left
D) down; right

B

Economics

You might also like to view...

The Argentinian crisis of 2001 was brought about by:

A. debt crisis. B. exchange rate crisis. C. excessive loss of national resources. D. None of these statements is true.

Economics

The Federal Reserve System first began operations in:

A. 1934 B. 1914. C. 1789. D. 1865.

Economics