Suppose that the economy is in equilibrium with a trade surplus and with saving less than investment.According to the circular flow model,the government's budget
A)must be in deficit
B)must be in surplus
C)must be balanced
D)could be in a surplus or a deficit
E)could be in balance or a surplus

Question

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The Answer of Suppose that the economy is in equilibrium with a trade surplus and with saving less than investment.According to the circular flow model,the government's budget
A)must be in deficit
B)must be in surplus
C)must be balanced
D)could be in a surplus or a deficit
E)could be in balance or a surplus

Suppose That the Economy Is in Equilibrium with a Trade