If a the government of Country Z is running a budget deficit and net exports are zero, then
A) investment is greater than saving.
B) investment and saving are equal.
C) saving is greater than investment.
D) none of the above.
C
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A chain-weighted index
A) calculates changes in prices by using an average of base years from neighboring years to obtain a more accurate measure of real GDP growth. B) is used to understate the rate of inflation. C) is a useful tool for determining which fence to purchase. D) uses neighboring years' data to calculate changes in nominal GDP.
The slope of the supply curve of reserves can be attributed to the fact that:
A) quantity supplied of reserves decreases with the federal funds rate. B) the supply of reserves is arbitrarily set by the World Bank. C) the Fed fixes the supply of reserves. D) quantity supplied of reserves increases with the federal funds rate.