If X - M = $0 and the government sector has a deficit of $250 billion, the private sector
A) has a deficit that equals $250 billion.
B) has a deficit that equals $500 billion.
C) has a surplus that equals $250 billion.
D) has a surplus that equals $500 billion.
C
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Which of the following is prerequisite of successful market economies?
A. the existence and enforcement of property rights B. a tax system that redistributes income from the rich to the poor C. the ability of the government to appropriate economic profits beyond a certain amount to ensure equality in income distribution D. a military presence to ensure political freedom
In response to the financial crisis of 2007-2008, policymakers used
a. expansionary monetary policy and expansionary fiscal policy. b. expansionary monetary policy and contractionary fiscal policy. c. contractionary monetary policy and expansionary fiscal policy. d. contractionary monetary policy and contractionary fiscal policy.