A temporary decrease in government purchases would cause
A) a rightward shift in the saving curve and a leftward shift in the investment curve.
B) a rightward shift in the saving curve and a rightward shift in the investment curve.
C) a rightward shift in the saving curve, but no shift in the investment curve.
D) no shift in the saving curve, but a leftward shift in the investment curve.
Correct Answer:
Verified
Q89: In the saving-investment diagram,an increase in current
Q90: If consumers believe that next year a
Q91: An invention that raises the future marginal
Q92: An increase in the expected real interest
Q93: The saving-investment diagram shows that a higher
Q95: David consumes 140 in the current period
Q96: If the stock market booms and people
Q97: If the government reduces the effective tax
Q98: An economy has full-employment output of 5000.Government
Q99: If consumers foresee future taxes completely,a reduction
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents