If Firms Decide to Decrease Their Purchases of U

Multiple Choice

If firms decide to decrease their purchases of U.S.-produced goods,

A) the decrease in investment will have no effect on U.S.income or consumption.
B) the decrease in investment will cause U.S.income to increase, which will cause consumption to increase.
C) the decrease in investment will cause U.S.income to decrease, which will cause consumption to decrease.
D) real GDP will increase by the same amount that investment spending decreased.
E) real GDP will decrease by the same amount that investment spending decreased.