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What will be the effect on the AD if the investment declines by $100 million? Show your calculation. Suppose MPS increases, what will happen to


What will be the effect on the AD if the investment declines by $100 million? Show your calculation.




Suppose MPS increases, what will happen to the size of a spending multiplier?



Suppose MPI increases, what will happen to the size of a spending multiplier?





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Effect of Investment Decline on Aggregate Demand AD A decline in investment of 100 million will shift the Aggregate Demand AD curve to the left This c... blur-text-image

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