The Uses-Of-Saving Identity Shows That If the Government Budget Deficit

question 17

Multiple Choice

The uses-of-saving identity shows that if the government budget deficit rises,then one of the following must happen.

• A)Private saving must rise, investment must fall, and/or the current account must fall.
• B)Private saving must rise, investment must fall, and/or the current account must rise.
• C)Private saving must rise, investment must rise, and/or the current account must fall.
• D)Private saving must fall, investment must rise, and/or the current account must rise.

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Definitions:

Formal Operational

Describes a stage in Jean Piaget's theory of cognitive development, where individuals (typically adolescents and adults) gain the ability to think abstractly and reason logically.

Piaget

A Swiss psychologist known for his developmental stage theory that describes how children's cognitive abilities evolve.

Postconventional Moral Reasoning

The highest stage in Kohlberg's moral development theory, where individuals make decisions based on universal ethical principles.

Secondary Sex Characteristics

Physical features that emerge during puberty but are not directly involved in reproduction, such as breast development in females and facial hair growth in males.