If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ? Options: A . &nbspSaving is unchanged B . &nbspThere is an increased in saving and the economy should grow more quickly C . &nbspThere is a decrease in saving and the economy should grow more slowly D . &nbspThere is not enough information to determine what will happen to saving

If the public consumes Rs 100 billion less and the government purchases Rs100 bi

Discussion Forum : Stocks And Surplus Economics

Question - If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ?

Options:

A . Saving is unchanged

B . There is an increased in saving and the economy should grow more quickly

C . There is a decrease in saving and the economy should grow more slowly

D . There is not enough information to determine what will happen to saving

Answer: Option A
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