Suppose That a Mixed Open Economy Is Producing at Its

question 69

Multiple Choice

Suppose that a mixed open economy is producing at its equilibrium level of income and that net exports are zero.If at the equilibrium income level the public sector's budget shows a surplus:

• A)C_a + I_g + X_n + G must exceed GDP.
• B)planned investment must exceed saving.
• C)a recessionary expenditure gap must exist.
• D)saving must exceed planned investment.

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Definitions:

Angiosperm

Flowering land plant; the seeds are borne within a fruit.

Pollination

The transfer of pollen from the male parts of a flower to the female parts, leading to fertilization and seed production.

Pollen Tube

In seed plants, a tube that forms when a pollen grain lands on the stigma and germinates. The tube grows, passing between the cells of the stigma and the style to reach the egg inside an ovule, where fertilization occurs.

Foreign Species

Species that are introduced to a new habitat where they are not naturally found, often leading to ecological imbalance.