When households buy more domestically$-$produced goods, all else equal

$($We$\text{'}$ll use this scenario again in the next question.$)$

economic investment rises and GDP rises

economic investment falls and GDP rises

consumption rises and GDP rises

consumption rises and GDP falls

Question $15$

$2\mathrm{.}5$ pts

Consider again the scenario from the last question.

Let's say the increase in spending on domestic goods is $$100$ million. Because of this increase in domestic spending, spending on foreign$-$produced goods falls by $$20$ million.

This will overall $$ let exports and $$ GDP overall.

decrease, decrease

increase, increase

decrease, increase

increase, decrease