The government budget deficit must be equal to the surplus
A. of saving over investment.
B. in the current account in international trade.
C. of saving over consumption.
D. of saving over investment plus the trade deficit.
Answer: D
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What incentive is created by a first-come first-serve allocation scheme?
A) To engage in rent-seeking. B) To have the most income. C) To be first. D) To be elected.
When the flow of money from the foreign countries to the domestic firms equals the flow of money from the home country to the foreign firms, _____
a. a trade surplus exists b. an equal amount of agricultural and manufactured products are exported c. a trade deficit exists d. an equal amount of goods and services are imported e. the value of net exports is zero
In general, the IMF provides developing countries with:
A. loans and lets these countries decide how the loans will be used. B. technical advice but does not provide them with loans. C. loans, but only if the government adopts certain policies specified by the IMF in return. D. neither loans nor technical advice.
In economics, the short run means a time period
A) during which new firms are prohibited from entering the industry. B) during which firms are not allowed to change the amount of imported resources they use. C) that is between one and five years. D) during which the firm is unable to change its plant size.