The Private Sector Balance and the Government Sector Balance Tend

question 105

Multiple Choice

The private sector balance and the government sector balance tend to move in ________. Net exports respond ________.

• A)opposite directions; closely to the government sector balance
• B)the same direction; to the sum of the government sector and private sector balances
• C)the same direction; closely to the government sector balance
• D)opposite directions; to the sum of the government sector and private sector balances
• E)the same direction; to changes in the exchange rate

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