When Private and Government Saving in an Economy Exceed Investment

question 27

Multiple Choice

When private and government saving in an economy exceed investment, then the government must

• A) print money.
• B) accumulate financial assets through lending.
• C) accumulate financial assets through borrowing.
• D) lower taxes.
• E) none of the above.

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Definitions:

Employed Category

Refers to the classification of individuals in the labor market who are currently holding a job or are employed.

Paid Employees

Individuals who perform work or services for a company or an individual in exchange for compensation, typically in the form of wages or salaries.

Own Business

The act of establishing, owning, and managing a company or commercial enterprise.

Unpaid Workers

Individuals who work without receiving monetary compensation, often contributing to family businesses or performing household tasks.