Refer to Exhibit 9-8

question 108

Multiple Choice

Refer to Exhibit 9-8.If saving increases by $500 billion,the new level of consumption will equal ______________.According to classical economists investment would _______________ and total expenditures would ________________________.

• A) $6,500 billion; then decrease by $500 billion; fall by $500 billion
• B) $6,500 billion; then increase by $500 billion; fall by $500 billion
• C) $7,500 billion; remain constant; fall by $500 billion
• D) $6,500 billion; then increase by $500 billion; remain constant

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Definitions:

Policy of Containment

A foreign policy strategy aimed at preventing the spread of communism, adopted by the United States during the Cold War.

Communist Victory

Refers to a successful achievement or takeover by communist forces or parties in a political or military struggle.

Atomic Bomb

A powerful weapon that releases enormous energy through nuclear reactions, first used in warfare by the United States during World War II.

Military Buildup

The process of nations increasing their military capability in terms of personnel, equipment, and technology, often in response to perceived threats or for strategic advantages.