Using the data in the above table, if saving equals $650 billion and exports are greater than imports,
A) the government sector must run a deficit.
B) net taxes will be greater than $1300 billion.
C) net taxes will be less than $650 billion.
D) government expenditures must increase.
B
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If price of a good rises, what happens to quantity demanded for that good?
A. It increases. B. It decreases. C. It does not change. D. The answer depends upon the supply of the good.
In the ultimatum game, one reason players don't choose the rational offer is
A) that there are too many possible outcomes to reasonably consider. B) they are worse off by taking the offer. C) they prefer to sacrifice to punish "unfair" behavior. D) that it is not a Nash equilibrium.
The law of comparative advantage suggests that
What will be an ideal response?
The optimal level of output may be defined as that level of output where:
a. the marginal benefit of the last unit purchased equals its marginal cost. b. total benefit equals total cost. c. it is impossible to define optimal in any meaningful way. d. average benefit exceeds average cost by the greatest amount. e. marginal benefit exceeds marginal cost by the greatest amount.