In an open economy, the government deficit is 400 and investment exceeds saving by 300, so in equilibrium the trade deficit (IM − X) must be
A) 100
B) 200
C) 300
D) 700
Correct Answer:
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Q178: Table 36-2 Q179: Table 36-2 Q180: Table 36-2 Q181: If the federal government has a deficit, Q182: Economic theory shows that the current account Q184: If the government budget is balanced, and Q185: One of the principal factors behind the Q186: The U.S.trade deficits of the 1980s and Q187: Despite the elimination of the federal budget Q188: To eliminate the trade deficits in the Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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