Which of the Following Statements Is True

question 399

Multiple Choice

Which of the following statements is true?

• A) If private investment is greater than private saving, then the private sector has a deficit.
• B) If private investment is greater than private saving, then either the government or net export sector must have a surplus.
• C) If private saving is greater than private investment, then the private sector has a surplus.
• D) All of the above answers are correct.

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Definitions:

Absolute Value

The non-negative value of a number regardless of its sign.

Elasticity

a measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price.

Quantity Effect

The change in quantity demanded or supplied as a result of changes in price.

Price Effect

The impact that a change in the price of a good or service has on its demand or supply.