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

question 271

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 saving equals $650 billion and exports are greater than imports,

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

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