Suppose US

question 252

Multiple Choice

Suppose U.S. net exports are - $400 billion and the U.S. government sector surplus is $200 billion. Then in the private sector, saving minus investment equals

• A) - $200 billion.
• B) - $600 billion.
• C) +$600 billion.
• D) +$200 billion.

---

Definitions:

Salvage Value

The approximated financial value of an asset at the termination of its usability.

Required Rate of Return

The minimum percentage rate of return on an investment that a person or company deems acceptable, considering the risks involved.

Warehouse Cost

Expenses associated with storing, handling, and managing goods in a warehouse.

Working Capital

It is the difference between a company's current assets and current liabilities, indicating the liquidity available to fund operations.