Answered

Which of the following statements represents a correct and sequentially accurate economic explanation?

A. The (U.S.) dollar appreciates, net exports rise, total expenditures on goods and services rise, AD rises, and the AD curve shifts rightward.
B. The interest rate falls, investment rises, total expenditures on goods and services rise, AD falls, and the AD curve shifts leftward.
C. Wealth increases, consumption rises, total expenditures on goods and services rise, AD falls, and the AD curve shifts rightward.
D. (Business) expectations about future sales become more positive, investment rises, total expenditures on goods and services rise, AD rises, and the AD curve shifts rightward.
E. Foreign real national income rises, net exports rise, total expenditures on goods and services fall, AD rises, and the AD curve shifts rightward.



Answer :

GinnyAnswer

Final answer:

The correct economic explanation is when business expectations improve, leading to increased investment, total expenditures, and a rise in aggregate demand with a rightward shift in the AD curve.


Explanation:

The correct and sequentially accurate economic explanation is: (Business) expectations about future sales become more positive, investment rises, total expenditures on goods and services rise, AD rises, and the AD curve shifts rightward. When businesses anticipate increased sales, they invest more, leading to higher total expenditures, aggregate demand, and a rightward shift in the AD curve.


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