An Increase in Private Saving (S)can Be Reflected in

question 32

Multiple Choice

An increase in private saving (S) can be reflected in

• A)a reduction in the budget deficit.
• B)a reduction in investment.
• C)an increase in net exports.
• D)all of the above

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity, leading to more efficient trade possibilities.

Mutually Beneficial Trade

Trade that provides benefits to both parties involved, allowing them to attain a level of satisfaction or economic utility that would not be possible individually.

Specialization

Division of productive activities so that no one is self-sufficient.

Self-Sufficient

The ability of an individual, household, or nation to meet all their needs without external assistance or trade.