For this question, assume that individuals do not hold currency (i.e., c = 0). The money multiplier is equal to

The relation S + (T - G) = I + NX describing the equilibrium of an economy explicitly demonstrates

A) deficit spending by the government reduces either investment and/or net foreign investment. B) deficit spending reduces private saving (assuming net foreign investment remains unchanged). C) as private saving increases net foreign investment must decrease, exports decline. D) as private saving increases the deficit must decline if investment decreases.

The largest level of government as measured by total spending is _____

a. federal government b. state governments c. county governments d. city governments