📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      If the public consumes €100 billion less and the

      government purchases €100 billion more (other things unchanging), which of the following statement is true?
      A Saving is unchanged Correct Answer Incorrect Answer
      B There is an increase in saving and the economy should grow more quickly. Correct Answer Incorrect Answer
      C There is a decrease in saving and the economy should grow more slowly. Correct Answer Incorrect Answer
      D There is not enough information to determine what will happen to saving. Correct Answer Incorrect Answer

      Solution

      Savings will be unchanged if the public consumes €100 billion less and the government purchases €100 billion more (other things unchanging)

      Practice Next
      ask-question