Suppose US

question 317

Multiple Choice

Suppose U.S. net exports are -$400 billion and the U.S. government sector surplus is $200 billion. Then in the private sector, saving minus investment equals

• A) -$600 billion.
• B) -$200 billion.
• C) +$600 billion.
• D) +$200 billion.

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Definitions:

Firm Produces

The process by which a firm transforms inputs into outputs, engaging in the production of goods or services for sale.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Equilibrium Price

The cost at which the amount of products available for sale matches the amount of products consumers want to buy.

Firms Operating

Businesses engaged in any activity that seeks profits by providing goods or services to customers.