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Economics
MEDIUM
ENGLISH
Economics
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 ?
Saving is unchanged
Correct answer
B
There is an increased in saving and the economy should grow more quickly
Option B
C
There is a decrease in saving and the economy should grow more slowly
Option C
D
There is not enough information to determine what will happen to saving
Option D
Correct answer: A
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