-In the Table Above, What Do Net Exports Equal?
A)

question 262

Multiple Choice

$\begin{array}{|l|l|}\hline \text { Component } & \begin{array}{l}\text { Amount } \\\text { (billions of dollars) }\end{array} \\\hline \begin{array}{l}\text { Government } \\\text { expenditure,G }\end{array} & 700 \\\hline \text { Net taxes, } T & 600 \\\hline \text { Investment }, I & 350 \\\hline \text { Savings, } S & 500 \\\hline\end{array}$
-In the table above, what do net exports equal?

• A) a surplus of $1,750 billion
• B) a deficit of $700 billion
• C) a deficit of $350 billion
• D) a surplus of $50 billion

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Definitions:

Deposit Expansion Multiplier

The deposit expansion multiplier refers to the ratio of the amount of money banks can create in the form of checkable deposits to the amount of reserves they hold.

Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, set by central banks to control the money supply and banking stability.

Depository Institutions Deregulation and Monetary Control Act

A U.S. federal law enacted in 1980 aimed at improving the Federal Reserve's control over monetary policy, deregulating certain aspects of the banking industry.

Legal Reserve Requirements

Legal reserve requirements are regulations set by a central bank that determine the minimum amount of reserves that must be held by a financial institution.