If Saving Is Greater Than Domestic Investment,then

question 80

Multiple Choice

If saving is greater than domestic investment,then

• A)there is a trade deficit and Y > C + I + G.
• B)there is a trade deficit and Y < C + I + G.
• C)there is a trade surplus and Y > C + I + G.
• D)there is a trade surplus and Y < C + I + G.

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Definitions:

Perfectly Price Elastic

Describes a situation where the quantity demanded or supplied changes infinitely in response to any change in price.

Luxury Good

A high-end item that is not necessary for living but is deemed as highly desirable within a culture or society.

Baseball Cards

Collectible items featuring baseball players that are traded and collected by enthusiasts.

Price Inelastic

Describes a situation where the quantity demanded or supplied of a good or service changes by a smaller percentage than the percentage change in price.