An increase in government spending

A) increases consumption and output.
B) increases consumption, decreases output.
C) decreases consumption, increases output.
D) decreases consumption and output.

C

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Refer to the above figure. Point B is known as

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If the ABC Company decides to take over the XYZ Corporation by purchasing all of the stock of XYZ, what does this tell us about the view ABC holds of XYZ?

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