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Holding Everything Else Constant, Which of the Following Would Cause

Question 128

Multiple Choice

Holding everything else constant, which of the following would cause economic activity to decrease?


A) The value of exports is less than the value of imports.
B) Business and household saving is less than investment spending.
C) Taxes are less than government purchases and transfer payments.
D) Household saving is less than household spending from borrowing.

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