The leakage and injections approach implies that a government deficit is financed by
A) private saving less private investment plus net exports.
B) private investment less private saving plus net exports.
C) the trade deficit must always offset the government deficit.
D) None of the above.
B
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Loans by the Federal Reserve to banks are known as
A) repurchase agreements. B) Federal funds. C) discount loans. D) cash items in the process of collection.
The U.S. tax burden is high compared to many European countries
a. True b. False Indicate whether the statement is true or false
What is the future value of $750 one year from today if the interest rate is 2.5 percent?
a. $766.50 b. $768.75 c. $770.23 d. None of the above are correct to the nearest cent.
Assume product A is an input in the production of product B. In turn, product B is a complement to product C. We can expect a decrease in the price of A to:
A. increase the supply of B and increase the demand for C. B. decrease the supply of B and increase the demand for C. C. decrease the supply of B and decrease the demand for C. D. increase the supply of B and decrease the demand for C.