if-a-countrys-investment-decreases-due-to-a-decline-in-business-confidence-how-w

Question

If a country's investment decreases due to a decline in business confidence, how would this affect the aggregate expenditures model?

Accepted Answer

Aggregate expenditures would decrease, potentially leading to a lower GDP.

Answer

Aggregate expenditures would increase, potentially leading to a higher GDP.

Answer

Aggregate expenditures would increase, but GDP would decrease.

Answer

Aggregate expenditures would remain unchanged.