All of the following are part of an economic model except

Select the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result,

A) the price of sailboats increased and the demand for sailboats decreased." B) the equilibrium quantity of sailboats increased." C) the price of sailboats increased. The higher price caused the supply of sailboats to increase." D) the price of sailboats increased and the quantity of sailboats demanded decreased."

In an open economy, the government deficit is 400 and investment exceeds saving by 300, so in equilibrium the trade deficit (IM? X) must be

A. 100 B. 200 C. 300 D. 700