If government purchases increases by $1 million while net taxes are unchanged, then:
A. private saving increases.
B. public saving does not change.
C. public saving increases.
D. public saving decreases.
Answer: D
You might also like to view...
Based on the figure, the economy is initially in long-run equilibrium at point A. If there is a favorable supply shock that increases potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then the new long-run equilibrium is reached at point: 
A. B B. D C. E D. C
Refer to Table 19-17. What is nominal GDP in 2016?
A) $3,320 B) $3,690 C) $6,360 D) $7,035
When a bank loans out $1,000, the money supply
A. increases. B. decreases. C. does not change. D. None of the above is correct.
SW's per-seat revenue on the same 1,000-mile trip length was higher than that of every airline except ______.
Fill in the blank(s) with the appropriate word(s).