The Private Sector Balance Is Equal to Savings ________ Investment

question 62

Multiple Choice

The private sector balance is equal to savings ________ investment, and the government sector balance is equal to government expenditure ________ taxes. If there is a deficit in the private sector balance and a deficit in the government sector balance, then there must be a ________ in net exports.

• A) plus; plus; surplus
• B) minus; minus; surplus
• C) plus; minus; surplus
• D) minus; minus; deficit
• E) plus; plus; deficit

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Definitions:

Representative Democracy

A system of government where citizens elect representatives to make decisions on their behalf.

Voters

Individuals who have the right to vote in elections, making choices among alternatives or candidates.

Politicians

Individuals engaged in the art or science of government, often as elected officials who develop or vote on laws and policies.

Involuntary Transactions

Economic exchanges where at least one party participates without willing consent, often resulting from coercion or lack of viable alternatives.