Which of the following statements represents a correct and sequentially accurate economic explanation? a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward. b. If investment increases, total expenditures on goods and services falls, and the AD curve shifts leftward. c. If consumption falls, total expenditures on goods and services falls, and the AD curve shifts rightward. d. If consumption falls, total expenditures on goods and services rises, and the AD curve shifts leftward.

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10-05-2021
Business

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Which of the following statements represents a correct and sequentially accurate economic explanation? a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward. b. If investment increases, total expenditures on goods and services falls, and the AD curve shifts leftward. c. If consumption falls, total expenditures on goods and services falls, and the AD curve shifts rightward. d. If consumption falls, total expenditures on goods and services rises, and the AD curve shifts leftward.

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anthougo anthougo · Answer 1 · 2021-05-14T04:14:24+02:00

Answer:

The statement that represents a correct and sequentially accurate economic explanation is:

a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.

Explanation:

Some of the factors that can cause the AD curve to shift rightward are increased consumer spending, declining marginal propensity to save, and an expansionary monetary and fiscal policy. Increased consumer spending can be brought about by increased net exports, which increase the propensity to spend. Declining marginal propensity to save increases the marginal propensity to spend, and this causes the AD curve to shift rightward. When government, through its monetary and fiscal policies, makes more money available, the AD curve shifts rightward, with an increased demand for goods and services.

andromache andromache · Answer 2 · 2022-01-04T11:45:05+01:00

The statement that represents a correct and sequentially accurate economic explanation is:

a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.

The following information should be considered:

Some of the factors that can cause the AD curve to shift rightward are increased consumer spending, declining marginal propensity to save, and an expansionary monetary and fiscal policy.
Increased consumer spending can be brought about by increased net exports, which increase the propensity to spend.
Declining marginal propensity to save increases the marginal propensity to spend, and this causes the AD curve to shift rightward.
When government, through its monetary and fiscal policies, makes more money available, the AD curve shifts rightward, with an increased demand for goods and services.

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