Solved

The Relation S + (T -G)= I + NX Describing

Question 23

Multiple Choice

The relation S + (T -G) = I + NX describing the equilibrium of an economy explicitly demonstrates


A) deficit spending by the government reduces either investment and/or net foreign investment.
B) deficit spending reduces private saving (assuming net foreign investment remains unchanged) .
C) as private saving increases net foreign investment must decrease,exports decline.
D) as private saving increases the deficit must decline if investment decreases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents