If saving is less than domestic investment, then

a. there is a trade deficit and Y > C + I + G.
b. there is a trade deficit and Y < C + I + G.
c. there is a trade surplus and Y > C + I + G.
d. there is a trade surplus and Y < C + I + G.

b

Economics

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A higher rate of saving should lead to

A) higher current consumption. B) less growth. C) more investment, higher capital growth, and more future consumption. D) a higher price level and reduced future consumption.

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An example of a good that is rival in consumption is:

A. an air show over the whole city. B. a floral display at a large university's graduation ceremony. C. a scientific discovery that allows florists to grow flowers to which no one is allergic. D. a Big Mac.

Economics