Multiple Choice
The figure given below represents the circular flow of income between households, firms, financial intermediaries, and foreign countries.
Figure 4.2
-Refer to Figure 4.2. Assume investment spending decreases by $4,000. Everything else being the same, what must be the new value of net trade flows in order to maintain total expenditures on business firms' output at $35,000?
A) -$2,500
B) -$1,500
C) $3,500
D) $6,500
E) $7,500
Correct Answer:

Verified
Correct Answer:
Verified
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