The private sector balance is equal to savings ________ investment, and the government sector balance is equal to government expenditure ________ taxes. If there is a deficit in the private sector balance and a deficit in the government sector balance, then there must be a ________ in net exports.
A) plus; plus; surplus
B) minus; minus; deficit
C) minus; minus; surplus
D) plus; plus; deficit
E) plus; minus; surplus
B
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Supermarkets will frequently not carry the products of food processors unless the processors pay fees to the supermarkets because
A) supermarkets are cartels. B) supermarkets often dominate the geographic areas in which they sell. C) supermarkets stand between the food processors and the ultimate consumers. D) supermarket shelves are scarce goods. E) supermarkets typically have more bargaining power than food processors.
By external balance, most economists mean
A) avoiding excessive imbalances in international payments. B) balance between exports and imports. C) balance between the trade and service accounts. D) what amounts to fixed exchange rates. E) imbalance in internal transactions.
If a firm hires 12 workers at $9 per hour each and the 13th worker will be hired only if the wage rate falls to $8 per hour, the marginal wage rate must be
A. -$8. B. $4. C. -$4. D. $8.
A cost of aggregation is that:
A. details about individual households and firms are lost. B. broad economic trends are obscured. C. the "big picture" cannot be studied. D. economy-wide totals cannot be obtained.