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AE Model: Components
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AE Model: Components
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15. Deriving the Aggregate Expenditures Model / AE Model: Components / Problem 1
Problem 1
What is the likely impact on business investment if firms expect higher future profits?
A
Investment will fluctuate unpredictably.
B
Investment is likely to increase.
C
Investment will remain unchanged.
D
Investment is likely to decrease.
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