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Suppose X - M = Net Exports; T - G

Question 391

Multiple Choice

Suppose X - M = net exports; T - G = government sector surplus or deficit; and S - I = private sector surplus or deficit. Which of the following relationships is correct?


A) X - M = T - G + S - I
B) S - I = X - M + T - G
C) T - G = X - M + S - I
D) None of the above answers are correct.

Correct Answer:

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