Use the Following to Answer Questions

question 69

Multiple Choice

Use the following to answer questions:
-(Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is an increase in investment spending, holding everything else constant, which outcome is likely to occur?

• A) a decrease in GDP
• B) an increase in GDP
• C) an increase in the unemployment rate
• D) a decrease in the inflation rate