X is exports, M is imports, T is net taxes, G is government expenditure, C is consumption expenditure, S is saving, and I is investment. The government sector surplus or deficit is equal to

Question

Quizplus · Accepted Answer

The government sector surplus or deficit is the difference between government revenue and government expenditure. This can be calculated as T - G, where T is net taxes and G is government expenditure. Therefore, option D is the correct answer. Option A is the equation for the private sector savings, while option B is the equation for the trade balance, and option C is the equation for the private saving-investment balance.

X Is Exports, M Is Imports, T Is Net Taxes