Suppose that in China, investment is ¥400 billion, saving is ¥400 billion, tax revenues are ¥500 billion, exports are ¥300 billion, and imports are ¥200 billion._______ in government expenditure or _______ in taxes will further increase China's budget _______, increase investment and speed economic growth.

Question

Quizplus · Accepted Answer

A decrease in government expenditure or an increase in taxes will increase the budget surplus (since both actions would lead to less spending or more revenue for the government, respectively), which can then be used to increase investment and speed up economic growth.

Suppose That in China, Investment Is ¥400 Billion, Saving Is