ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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If the public consumes $200 billion less and the
government purchases $200 billion more (other things
unchanging), which of the following statements is true?
a. There is an increase in saving, and the economy
should grow more quickly. b. Saving is unchanged.c.
There is not enough information to determine what will
happen to the saving. d. There is a decrease in saving,
and the economy should grow more slowly.
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Transcribed Image Text:If the public consumes $200 billion less and the government purchases $200 billion more (other things unchanging), which of the following statements is true? a. There is an increase in saving, and the economy should grow more quickly. b. Saving is unchanged.c. There is not enough information to determine what will happen to the saving. d. There is a decrease in saving, and the economy should grow more slowly.
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