Suppose that in China, investment is $400 billion, saving is $400 billion, tax revenues are $500 billion, exports are $300 billion, and imports are $200 billion. ________ in government expenditure or ________ in taxes will further increase China's budget ________, increase investment and speed economic growth.
A)A decrease; an increase; surplus
B)An increase; a decreases; deficit
C)An increase; an increase; surplus
D)A decrease; a decrease; deficit
E)A decrease; an increase; deficit

Question

Quizplus · Accepted Answer

A decrease in government expenditure or an increase in taxes will increase China's budget surplus, as it would reduce the budget deficit or increase the surplus by either reducing spending or increasing revenue.

Suppose That in China, Investment Is $400 Billion, Saving Is