If firms decide to decrease their purchases of U.S.-produced goods,
A) the decrease in investment will have no effect on U.S.income or consumption.
B) the decrease in investment will cause U.S.income to increase, which will cause consumption to increase.
C) the decrease in investment will cause U.S.income to decrease, which will cause consumption to decrease.
D) real GDP will increase by the same amount that investment spending decreased.
E) real GDP will decrease by the same amount that investment spending decreased.
Correct Answer:
Verified
Q87: Answer the questions below: Q88: The size of the MPC determines how Q89: The slope of the 45-degree line Q90: Interest rates do not affect consumption.
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A)equals zero.
B)equals
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