If the Public Consumes R₁00 Billion Less and the Government

Multiple Choice

If the public consumes r₁00 billion less and the government purchases r₁00 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.