A temporary increase in government purchases would cause
A)a leftward shift in the saving curve and a leftward shift in the investment curve.
B)a leftward shift in the saving curve and a rightward shift in the investment curve.
C)a leftward shift in the saving curve,but no shift in the investment curve.
D)no shift in the saving curve,but a rightward shift in the investment curve.

Question

Quizplus · Accepted Answer

A temporary increase in government purchases reduces national savings, causing a leftward shift in the saving curve, but it does not directly affect the investment curve.

A Temporary Increase in Government Purchases Would Cause