Suppose That in China, Investment Is ¥400 Billion, Saving Is

question 49

Multiple Choice

Suppose that in China, investment is ¥400 billion, saving is ¥400 billion, tax revenues are ¥500 billion, exports are ¥300 billion, and imports are ¥200 billion._______ in government expenditure or _______ in taxes will further increase China's budget _______, increase investment and speed economic growth.

• A)A decrease; an increase; surplus
• B)A decrease; an increase; deficit
• C)An increase; an increase; surplus
• D)A decrease; a decrease; deficit
• E)An increase; a decreases; deficit

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Definitions:

Seasonal Discounts

Temporary reductions in price offered during certain times of the year, often related to holidays, seasons, or periods of lower demand.

Absence Of Tariffs

A scenario where there are no taxes or duties imposed on imported or exported goods, often leading to more free trade between countries.

Dumping

A protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market.

Domestic Market

The market within a country's borders, where goods and services are traded or sold to local customers.