If net exports is 100 and the private sector balance is 150, then the government sector balance is
A) -50.
B) 50.
C) 250.
D) 0.
A
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Producers favor a ________ because ________
A) price ceiling; the equilibrium price increases B) price support; the deadweight loss is minimized C) price ceiling; total revenue increases D) price support; total revenue increases E) price ceiling; consumer surplus increases
Suppose the conditions of the first welfare theorem hold. If the government redistributes income prior to production and trade occurring, the market outcome (resulting from production and trade) will be the same as it would have been had the government not redistributed income (so long as redistribution does not produce deadweight losses).
Answer the following statement true (T) or false (F)
Diminishing marginal returns explains why a firm’s long-run average total cost curve is U shaped.
Answer the following statement true (T) or false (F)
Along an IS curve as income levels __________, saving is larger, so the interest rate must be __________ to expand the level of investment so it will be equal to saving
A) increase; higher B) increase; lower C) decrease; higher D) decrease; lower