Explain by how much have investment - consumption

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Reference no: EM1365218

Assume the government cuts its purchases by $60 billion. As a result, the budget deficit is reduced by $20 billion, saving increases by $10 billion, disposable personal income decrseases by$15 billion and the trade deficit is reduced by $5 billion. By how much have investment, consumption and national income changed?

Reference no: EM1365218

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