Using the standard 45° line diagram, how does a decrease in investment spending effect the expenditure schedule?
A. It increases the slope of the expenditure schedule.
B. It decreases the slope of the expenditure schedule.
C. It shifts the expenditure schedule downward.
D. It shifts the expenditure schedule upward.
Answer: C
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Your sister always brags about how savvy of a grocery shopper she is. She believes that she saves lots of money by paying with coupons and making her grocery purchases at multiple stores to get the lowest prices on all goods. She may overestimate her savings because:
A. she does not count the value of the time it took to sort and clip coupons as a cost. B. she does not count the cost of the gas used driving extra miles to multiple grocery stores. C. she does not count the value of the extra time it takes to stand in multiple lines at multiple stores and use multiple coupons compared to a trip to one store with no coupons. D. All of these.
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The total amount of money that a government owes at a point in time is called:
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