-Using the Data in the Above Table, If Net Exports

question 421

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Item } & \begin{array} { l } \text { Billions of } \\\text { dollars }\end{array} \\\hline \text { Exp orts of goods and services, } X & \\\hline \text { Imports of goods and services, } M & 1,000 \\\hline \text { Net taxes, } T & \\\hline \text { Government exp enditure, } G & 1,300 \\\hline \text { Saving, } S & \\\hline \text { Investment, } I & 650 \\\hline\end{array}$$
-Using the data in the above table, if net exports = -$500 billion and the government balances its budget,

• A) savings must equal $150 billion.
• B) the private sector must balance its budget.
• C) the private sector runs a surplus of $850 billion.
• D) saving must equal $650 billion.

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