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For each of the following, place an X to indicate the component affected and an R (increase) or an L (decrease) to show whether the AD curve shifts Right or Left. Consider only the primary effect. Consumption (C), Investment (I), Government spending (G), and Net Exports (NE):

Factor

C

I

G

NE

R or L

Real interest rate decreases

         

Consumers and executives become more confident in the economic future

         

The stock market rises

         

China's economic growth slows

         

Congress increases spending in the current fiscal year

         

Tariffs are imposed by many countries to protect domestic employment

         

The US Import/Export bank eliminates guarantees for loans to foreign airlines to purchase Boeing aircraft

         

Congress enacts tax incentives for firms purchasing new equipment and facilities

         

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Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019

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