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Refer to Figure 2 Below

Question 23

Multiple Choice

Refer to Figure 2 below.Which of the following statements is NOT true? Figure 2

A) The upward shift in the expenditure line from C+I+G+(X-M) 1 to C+I+G+(X‑M) ₂ and consequent increase in national income would result from a reduction in interest rates.
B) The upward shift in the expenditure line from C+I+G+(X-M) 1 to C+I+G+(X‑M) ₂ and consequent increase in national income would result from an increase in exports.
C) The upward shift in the expenditure line from C+I+G+(X-M) 1 to C+I+G+(X‑M) ₂ and consequent increase in national income would result from a reduction in saving.
D) The upward shift in the expenditure line from C+I+G+(X-M) 1 to C+I+G+(X‑M) ₂ and consequent increase in national income would result from a reduction in government expenditure.

Correct Answer: