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How would a rise in business investment affect the aggregate demand curve?

User Elijha
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The aggregate demand curve shifts to the right
User Lienau
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Answer:

Increase in the country's cash supply brings down financing costs, hence diminishes the expense of working together in the business.

When we get the good return during the investment, then the venture spending increments thus also aggregates supply. As total stockpile expands, total interest increments thus costs go up.

Therefore genuine GDP and APL increment. When the business investment get rises then it affected the aggregate curve of demand as it also increase or rise the aggregate supply and also the capacity of the productivity. Then, the investment increase the economical growth.

User Andrea NR
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