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-Refer to Figure 8-6

Question 102

Multiple Choice

-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
-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

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