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National income is initially at its equilibrium level

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Reference no: EM13156484

Suppose that national income is initially at its equilibrium level when desired investment falls. We would expect

- a fall in national income, but not by as much as the fall in desired investment
- no change in national income even though desired investment spending falls
- an increase in national income by an amount equal to the reduction in investment spending
-a fall in national income by some multiple of the fall in desiredinvestment spending

Reference no: EM13156484

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