Consider the long-run theory of investment,saving,and growth.An increase in the government budget surplus,everything else constant,will cause a(n)

Question

Quizplus · Accepted Answer

An increase in the government budget surplus implies that the government is saving more or spending less, which, when added to private saving, increases national saving. This is because national saving is the sum of private saving and government saving.

Consider the Long-Run Theory of Investment,saving,and Growth