Multiple Choice
Refer to figure 2 below. Which of the following statements is NOT true? Figure 2 
A) The upward shift in the expenditure line from C+I+G+(X-M) 1 to C+I+G+(X-M) 2 and consequent increase in national income would result from a reduction in interest rates.
B) The upward shift in the expenditure line from C+I+G+(X-M) 1 to C+I+G+(X-M) 2 and consequent increase in national income would result from an increase in exports.
C) The upward shift in the expenditure line from C+I+G+(X-M) 1 to C+I+G+(X-M) 2 and consequent increase in national income would result from a reduction in saving.
D) The upward shift in the expenditure line from C+I+G+(X-M) 1 to C+I+G+(X-M) 2 and consequent increase in national income would result from a reduction in government expenditure.
Correct Answer:
Verified
Correct Answer:
Verified
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