3. Explain how the aggregate expenditure function shifts in response to changes in each of the following

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3. Explain how the aggregate expenditure function shifts in response to changes in each of the following variables:

a. The real interest rate increases.

b. Consumer confidence decreases.

c. Higher taxes are imposed on business profits.

d. The economies of many countries in the rest of the world go into recessions.

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Economics For Managers

ISBN: 9781292060095

3rd Global Edition

Authors: Paul Farnham

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