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 DecreaseAfter Saving DecreaseConsumption (C)$280 million$320 millionInvestment (I)$200 million$ millionGovernment Purchases (G)$250 million$ millionExports (EX)$500 million$500 millionImports (IM)$300 million$300 million As a result of the decrease in saving, total expenditures will .

Total expenditure is the sum of consumption (C), investment (I), government purchases (G) and net…

Answered: The following table shows data for the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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	After Saving Decrease
Consumption (C)	$280 million	$320 million
Investment (I)	$200 million	$ million
Government Purchases (G)	$250 million	$ million
Exports (EX)	$500 million	$500 million
Imports (IM)	$300 million	$300 million

As a result of the decrease in saving, total expenditures will .

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