The Figure Given Below Represents the Circular Flow of Income

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.