Multiple Choice
Use the following to answer questions :
Figure: Circular-Flow Model 
-(Figure: Circular-Flow Model) Look at the figure Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is an increase in investment spending, which of the following is likely to happen?
A) a decrease in the nominal GDP
B) an increase in the nominal GDP
C) an increase in the unemployment rate
D) a decrease in the inflation rate
Correct Answer:
Verified
Correct Answer:
Verified
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