A Temporary Decrease in Government Purchases Would Cause

question 75

Multiple Choice

A temporary decrease in government purchases would cause

• A)a rightward shift in the saving curve and a leftward shift in the investment curve.
• B)a rightward shift in the saving curve and a rightward shift in the investment curve.
• C)a rightward shift in the saving curve, but no shift in the investment curve.
• D)no shift in the saving curve, but a leftward shift in the investment curve.

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Definitions:

Contract

A legally enforceable agreement between two or more parties with mutual obligations.

Voidable

A legal term describing a contract or transaction that may be declared invalid by one of the parties to the contract.

Minor's Option

The legal ability of a minor to affirm or void contracts and agreements, based on their lack of legal capacity to enter into contracts.

Deposit

An upfront payment or security placed in trust or as a guarantee for the fulfillment of an obligation or purchase.