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  • 24-01-2020
  • Business
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"as the interest rate decreases the planned aggregate expenditure curve shifts downward"
True/False

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osondumartins
osondumartins osondumartins
  • 24-01-2020

Answer:FALSE

Explanation: Aggregate expenditure is the total amount of goods and services rendered and paid for by both the Government or private individuals,it can also be described as the current market value of all the finished products( goods and services) in an Economy.

As the interest rate reduces the more people will be ready to make expenditures which will cause the aggregate expenditure curve to shift UPWARD. CONSUMPTION, INCOME, GOVERNMENT EXPENDITURE, NET EXPORT AND INVESTMENT are components of aggregate expenditure.

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