If the government runs a budget deficit, then
A) national saving cannot fund investment.
B) national saving is negative.
C) part of household and business saving finances the deficit.
D) household but not business saving must pay for the deficit.
Correct Answer:
Verified
Q7: Suppose the real interest rate rises and
Q8: Gross investment
A)includes only replacement investment.
B)is the purchase
Q9: National saving is defined as the amount
Q10: A nation's investment must be financed by
A)national
Q13: If households' disposable income decreases, then
A)households' saving
Q14: Which of the following is true regarding
Q15: The crowding- out effect refers to
A)government spending
Q16: If the quantity of loanable funds supplied
Q17: The tendency for private saving to increase
Q51: People expect an inflation rate of 5
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