In an Open Economy with Government and Demand- Determined Output

Multiple Choice

In an open economy with government and demand- determined output, a decrease in the equilibrium level of national income could be caused by

A) a decrease in the desired level of saving at all levels of income.
B) an increase in government purchases.
C) a decrease in the desired level of imports at all levels of income.
D) a decrease in taxes at all levels of income.
E) a decrease in desired consumption at all levels of income.