For a given level of national income, an increase in private consumption or government purchases will cause national saving to

Question

Quizplus · Accepted Answer

An increase in private consumption or government purchases will both lead to a decrease in national saving. Private consumption means individuals are spending more, reducing the amount of money available for saving. An increase in government purchases means the government is spending more, also reducing the amount available for saving.

For a Given Level of National Income, an Increase in Private