Multiple Choice
If the public consumes €100 billion less and the government purchases €100 billion more (other things unchanging) , which of the following statement is true?
A) Saving is unchanged.
B) There is an increase in saving and the economy should grow more quickly.
C) There is a decrease in saving and the economy should grow more slowly.
D) There is not enough information to determine what will happen to saving.
Correct Answer:
Verified
Correct Answer:
Verified
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