If Private Investment Increased by $50 Billion While GDP Remained

question 140

Multiple Choice

If private investment increased by $50 billion while GDP remained the same,which of the following could have occurred,all else being the same?

• A) Consumption spending decreased by $50 billion
• B) Exports increased by $50 billion
• C) Imports decreased by $50 billion
• D) Net exports increased by $50 billion
• E) Government spending increased by $50 billion

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Definitions:

Creative Destruction

A concept in economics introduced by Joseph Schumpeter, referring to the process in which technological progress and innovation lead to the demise of outdated industries and economic structures, making way for new ones.

Dominant Firms

Companies that have a major proportion of market share and can influence market conditions and prices.

New Products

Goods or services that have been recently developed, introduced to the market, or significantly improved to meet consumer needs or open new markets.

Competing Products

Goods or services offered in the market that serve similar needs or desires of consumers, often leading to a choice preference based on price, quality, or other attributes.