Suppose Small Business Owners Decide to Spend Less

question 78

Multiple Choice

Suppose small business owners decide to spend less.How will this affect an economy?

• A)It will have no impact since this group makes up a small portion of any economy.
• B)It will decrease the level of income of other people since one person's spending is someone else's income.
• C)It will cause prices for many goods to increase.
• D)It will increase the level of income in the economy since other groups will spend more.

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Trade Deficits

A situation where a country's imports exceed its exports over a certain period, leading to more money leaving the economy than entering it.

National Income

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