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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