Which of the following statements is TRUE?
A) If private saving is greater than private investment, then the private sector has a surplus.
B) If private investment is greater than private saving, then the private sector has a deficit.
C) If private investment is greater than private saving, then either the government or net export sector must have a surplus.
D) All of the above answers are correct.
D
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To keep employees from shirking, invest in greater monitoring
a. when monitoring is expensive relative to its benefits b. especially when monitoring is efficient c. when employees respond well to incentive contracts d. when incentives solve both moral hazard and adverse selection problems with employees
The reserve ratio is the ratio of: a. Federal Reserve member banks to nonmember banks. b. Federal Reserve nonmember banks to member banks. c. Federal Reserve member banks to all U.S. banks
d. a bank's total deposits to its reserves. e. a bank's reserves to its total deposits.