The United States has net exports of -$350 billion and the private sector balance is -$400 billion. What is the government sector balance?
What will be an ideal response?
The sum of the private sector balance plus the government sector balance equals net exports. Therefore -$350 billion = -$400 billion + government sector balance, so the government sector balance is $50 billion.
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A) 4.75% B) 7.8% C) 95% D) 96.2%
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A. automatic stabilizers. B. discretionary fiscal policy. C. expansionary fiscal policy. D. contractionary fiscal policy.
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