The following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise from $280 million to $320 million. Assume Say's law holds in this economy. Fill in the data for the economy after the decrease in saving. Consumption (C) Investment (I) Government Purchases (G) Exports (EX) Imports (IM) Before Saving Decrease $280 million $200 million $250 million $500 million $300 million As a result of the decrease in saving, total expenditures will After Saving Decrease $320 million $ $ million million $500 million $300 million
The following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise from $280 million to $320 million. Assume Say's law holds in this economy. Fill in the data for the economy after the decrease in saving. Consumption (C) Investment (I) Government Purchases (G) Exports (EX) Imports (IM) Before Saving Decrease $280 million $200 million $250 million $500 million $300 million As a result of the decrease in saving, total expenditures will After Saving Decrease $320 million $ $ million million $500 million $300 million
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Savings,investment And The Financial System
Section: Chapter Questions
Problem 4PA
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Transcribed Image Text:Step 2: The Effect of Saving on Total Expenditures
The following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise
from $280 million to $320 million. Assume Say's law holds in this economy.
Fill in the data for the economy after the decrease in saving.
Before Saving Decrease
$280 million
$200 million
$250 million
$500 million
$300 million
Consumption (C)
Investment (I)
Government Purchases (G)
Exports (EX)
Imports (IM)
As a result of the decrease in saving, total expenditures will
After Saving Decrease
$320 million
million
million
$500 million
$300 million
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