Question: Consider the relationship between the AE curve and the AD curve. A rise in the amount of desired investment expenditure at each level of national

Consider the relationship between the AE curve and the AD curve. A rise in the amount of desired investment expenditure at each level of national income

A.causes a movement along the AD curve.

B.causes a movement along the AE curve.

C.causes a shift of the AE curve but no movement of the AD curve.

D.shifts the AD curve to the left.

E.shifts the AD curve to the right.

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2. Find out if there are other reference points that can be used as reasonable alternatives.

1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.