In the Income-Expenditure Model,if Autonomous Saving Increases by $15 Billion,_____

question 47

Multiple Choice

In the income-expenditure model,if autonomous saving increases by $15 billion,_____.

• A)the aggregate expenditure line shifts upward by $15 billion
• B)planned investment increases by $15 billion
• C)the aggregate expenditure line shifts downward by $15 billion
• D)planned investment decreases by $15 billion
• E)the equilibrium level of real GDP demanded decreases by $15 billion

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Definitions:

Yen

The official currency of Japan, symbolized as ¥ and known in finance as JPY.

Dollar

The official currency of the United States, also used as a standard monetary unit in many other countries.

U.S. Net Capital Outflow

The difference between the purchase of foreign assets by U.S. citizens and the purchase of U.S. assets by foreigners, reflecting the flow of capital from and into the U.S.

U.S. Saving

The portion of income that individuals, businesses, and the government in the United States set aside rather than spending it immediately.