When the Economy Is in Macro Equilibrium

question 38

Multiple Choice

When the economy is in macro equilibrium,

• A) the sum of savings plus investment must equal the sum of imports plus exports.
• B) the sum of savings plus imports plus taxes must equal the sum of investment plus government purchases plus exports.
• C) the sum of savings plus government purchases must equal exports minus imports.
• D) the government's budget must be in balance.

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Definitions:

Myelin

A fatty substance that encases and insulates nerve fibers, speeding up electrical communication between neurons.

Neural Impulse

An electrical signal that transmits information along a neuron, enabling communication within the nervous system.

Neurotransmitters

Chemical substances in the body that transmit nerve impulses across a synapse from one nerve cell to another.

Fatty Substance

Materials composed of lipids, which can be found in various forms throughout the body, playing critical roles in energy storage, insulation, and cell structure.