Which of the following statements is false?
A) If the economy's savings plus net taxes minus government spending minus investment is positive, it must mean that the economy's net export is positive.
B) Economy's investment can never be less than economy's savings.
C) Negative net export means that the economy is a net borrower in the international financial capital market.
D) Other things remaining the same, higher is the fiscal deficit, lower is the net export.
Correct Answer:
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A) decreases aggregate expenditure and
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