Refer to Figure 2 Below

question 5

Multiple Choice

Refer to figure 2 below. Which of the following statements is NOT true? Figure 2

• A) The upward shift in the expenditure line from C+I+G+(X-
• M)₁ to C+I+G+(X-
• M)₂ and consequent increase in national income would result from a reduction in interest rates.
• B) The upward shift in the expenditure line from C+I+G+(X-
• M)₁ to C+I+G+(X-
• M)₂ and consequent increase in national income would result from an increase in exports.
• C) The upward shift in the expenditure line from C+I+G+(X-
• M)₁ to C+I+G+(X-
• M)₂ and consequent increase in national income would result from a reduction in saving.
• D) The upward shift in the expenditure line from C+I+G+(X-
• M)₁ to C+I+G+(X-
• M)₂ and consequent increase in national income would result from a reduction in government expenditure.