When Households Decrease Consumption Spending, Which of the Following Is

Multiple Choice

When households decrease consumption spending, which of the following is likely to occur?

A) The overall level of economic activity in the circular flow of income will remain unchanged.
B) Firms will increase the level of investment in capital equipment and assets.
C) Firms will employ more factors of production in an attempt to stimulate household spending.
D) Firms will decrease their demand for the factors of production from households.