Consider leakages and injections in an open economy with government sector. Select the incorrect equation from the following:
A) (Savings + net taxes - government spending - investment) = (export - import) .
B) (Savings + net taxes - government spending) + (import - export) = investment.
C) (Savings + export + government spending) = (import + net taxes + investment) .
D) (Savings + import + net taxes) = (investment + government spending + export) .
Correct Answer:
Verified
Q26: The government budget balance (BB) is:
A) government
Q27: GDP, the tax rate, autonomous taxes, transfer
Q28: Q29: Q30: Consider leakages and injections in an open Q32: Which of the following statements is false? Q33: Government actions to change its budget in Q34: Government may be able to increase equilibrium Q35: Recession-fighting policies can be handled most easily Q36: Expansionary fiscal policy:
A)
A) decreases aggregate expenditure and
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