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Use the information on the hypothetical economy below of Mudville to answer thequestions. 2012 (in millions) 2013 (in millions) Gov. Spending $55 $63 Private Savings

Use the information on the hypothetical economy below of Mudville to answer thequestions.

2012 (in millions) 2013 (in millions)

Gov. Spending $55 $63

Private Savings $95 $95

Exports $7 $7

Imports $13 $13

Taxes $31 $31

Calculate private investment spending in 2012 and2013.

2012: $___?___ millions

2013:$___?___ millions

Select the answer that describes the impact the increased government spending has on private investment spending in Mudville given the information in thetable.

A. Leontiefparadox

B. Laffecurve

C.crowdingin

D. crowdingout

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