-Refer to Figure 8-6.Suppose that a $1 trillion increase in government spending shifted the demand for funds curve from D₁ to D₂.What would happen to the sum of investment and consumption spending? That sum would
A) remain unchanged
B) rise by $0.6 trillion
C) rise by $1 trillion
D) fall by $1 trillion
E) fall by $0.4 trillion

Question

-Refer to Figure 8-6.Suppose that a $1 trillion increase in government spending shifted the demand for funds curve from D₁ to D₂.What would happen to the sum of investment and consumption spending? That sum would
A) remain unchanged 
B) rise by $0.6 trillion 
C) rise by $1 trillion 
D) fall by $1 trillion 
E) fall by $0.4 trillion

Quizplus · Accepted Answer

The Answer of 
-Refer to Figure 8-6.Suppose that a $1 trillion increase in government spending shifted the demand for funds curve from D₁ to D₂.What would happen to the sum of investment and consumption spending? That sum would
A) remain unchanged 
B) rise by $0.6 trillion 
C) rise by $1 trillion 
D) fall by $1 trillion 
E) fall by $0.4 trillion