In a large open economy like the United States, an increased government budget deficit which reduces national saving
A) reduces investment and improves the current account balance.
B) reduces investment and reduces the current account balance.
C) has no effect on investment, but reduces the current account balance.
D) has no effect on either investment or the current account balance.
B
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In the above table, the government sector balance is a
A) surplus of $200 billion. B) deficit of $200 billion. C) surplus of $100 billion. D) deficit of $100 billion.
Which of the following is TRUE of the European Union's cap-and-trade program?
A) Firms are taxed based on the their pollution levels. B) Firms are forced to shut down when they exceed their pollution limits. C) Governments subsidize firms to develop devices to reduce pollution. D) Firms can trade pollution permits to meet their pollution limits.