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An Increase in the Purchases of Newly Constructed Houses will Result in Which of the Following?
A. Aggregate demand will decrease as a result of a decrease in the price level.
B. Aggregate demand will increase as a result of an increase in investment spending.
C. Aggregate demand will increase as a result of an increase in exports.
D. Aggregate demand will not change, since consumer spending has not changed.
E. Aggregate demand will not change, since investment spending has not changed.
Answer – (B) Aggregate demand will increase as a result of an increase in investment spending.
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