-Using the Data in the Above Table, If Saving Equals

question 187

Multiple Choice

-Using the data in the above table, if saving equals $650 billion and exports are greater than imports,

• A) government expenditures must increase.
• B) the government sector must run a deficit.
• C) net taxes will be less than $650 billion.
• D) net taxes will be greater than $1300 billion.

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Definitions:

Necessity

A good or service that is essential for survival and basic quality of life, such as food and shelter.

Few Substitutes

A market condition where there are limited alternatives available for a particular product or service, potentially leading to higher prices.

Price-Inelastic

Describes a situation where the demand for a good or service is relatively unchanged despite changes in its price.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that producers are willing and able to sell, usually upward sloping.