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

• A. Aggregate expenditures would increase, potentially leading to a higher GDP.
• B. Aggregate expenditures would increase, but GDP would decrease.
• C. Aggregate expenditures would decrease, potentially leading to a lower GDP.
• D. Aggregate expenditures would remain unchanged.

Answer: (C)