If X - M = $0 and the government sector has a deficit of $250 billion, the private sector

Name: If X - M = $0 and the government sector has a deficit of $250 billion, the private sector
Brand: Quizplus
Rating: 5.0 (50 reviews)

Question

Quizplus · Accepted Answer

In a closed economy, the sum of the government sector balance, the private sector balance, and the foreign sector balance (X - M) must equal zero. Given X - M = $0 and a government deficit of $250 billion, the private sector must have a surplus of $250 billion to balance the equation.

If X - M = $0 and the Government Sector