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-Refer to Figure 8-6

Question 79

Multiple Choice

-Refer to Figure 8-6.Suppose that a $1 trillion increase in government spending shifted the demand for funds curve from D<sub>1 </sub>to D<sub>2</sub>.What would happen to the sum of investment and consumption spending? That sum would A) remain unchanged B) rise by $0.6 trillion C) rise by $1 trillion D) fall by $1 trillion E) fall by $0.4 trillion
-Refer to Figure 8-6.Suppose that a $1 trillion increase in government spending shifted the demand for funds curve from D1 to D2.What would happen to the sum of investment and consumption spending? That sum would


A) remain unchanged
B) rise by $0.6 trillion
C) rise by $1 trillion
D) fall by $1 trillion
E) fall by $0.4 trillion

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