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. Suppose households reduce saving to $7,000. Everything else held constant, consumption spending must now be:
A) $18,000.
B) $22,500.
C) $28,000.
D) $32,000.
E) $38,000.
Correct Answer:

Verified
Correct Answer:
Verified
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