If the public consumes $200 billion less and the government purchases $200 billion more (other things unchanging), which of the following statements is true? a. There is an increase in saving, and the economy should grow more quickly. b. Saving is unchanged. c. There is not enough information to determine what will happen to the saving. d. There is a decrease in saving, and the economy should grow more slowly.

If the public consumes $200 billion less and the government purchases $200 billion more (other things unchanging), which of the following statements is true? a. There is an increase in saving, and the economy should grow more quickly. b. Saving is unchanged. c. There is not enough information to determine what will happen to the saving. d. There is a decrease in saving, and the economy should grow more slowly.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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