Which of the following describes the relationship between GDP and government spending?
a. Government spending = GDP + consumption + private investment - exports - imports
b. Government spending = GDP - consumption - private investment - exports - imports
c. Government spending = GDP - consumption - private investment + exports + imports
d. Government spending = GDP - consumption - private investment - exports + imports
e. Government spending = GDP + consumption - private investment + exports - imports
D
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People's best guesses about returns on assets are called
A) expected returns. B) liquidity. C) risk. D) the term structure of returns.
The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, how many Nash equilibria are there?
A) 0 B) 1 C) 2 D) It cannot be determined.