Refer to Exhibit 9-8

Multiple Choice

Refer to Exhibit 9-8.If saving increases by $500 billion,the new level of consumption will equal ______________.According to classical economists investment would _______________ and total expenditures would ________________________.

A) $6,500 billion; then decrease by $500 billion; fall by $500 billion
B) $6,500 billion; then increase by $500 billion; fall by $500 billion
C) $7,500 billion; remain constant; fall by $500 billion
D) $6,500 billion; then increase by $500 billion; remain constant