In Equilibrium, Where Y = GDP, C = Consumption, G

question 9

Multiple Choice

In equilibrium, where Y = GDP, C = consumption, G = government spending, E = exports, and M = imports, Y - C - G - E - M) must equal

• A) private saving.
• B) public saving.
• C) the sum of private and public saving.
• D) the sum of private and foreign saving.
• E) the sum of public, private, and foreign saving.

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Definitions:

Division A

A specified branch or segment of a company, often focused on a particular type of product or service.

Stock Price

Stock price refers to the current market price of a share of stock, which fluctuates based on supply and demand, investor sentiment, and underlying company performance.

Stock Market Return

Stock market return is the revenue generated by an investment in the stock market over a specific period, which includes dividends received and capital gains realized.

Risk Free Rate

The risk-free rate is the theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.