Problem on aggregate expenditure function


Describe what would happen to the aggregate expenditure function in each of the following cases. Would it increase (shift up), decrease (shift down), or not shift at all?

(i) Business confidence and expected profitability increases.

(ii) Household wealth decreases.

(iii) Output (and incomes) increase.

(iv) The exchange rate appreciates.

(v) The real interest rate decreases.

(vi) Capacity utilization increases.

(vii) Consumer confidence increases.

(viii) Credit availability increases.

(ix) Household debt increases.

(x) Foreign income increases.

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Macroeconomics: Problem on aggregate expenditure function
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