Which of the Following Is Correct

question 53

Multiple Choice

Which of the following is correct?
i. The private sector balance equals saving minus investment.
ii. Net exports is exports of goods and services plus imports of goods and services.
iii. Net exports equals the sum of the private sector balance plus the government sector balance.

• A) i only
• B) ii only
• C) iii only
• D) i and iii
• E) i, ii, and iii

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Definitions:

Sales Taxes

Levies imposed by governments on the sale of goods and services, contributing to public revenue.

Constant-rate

A process or condition that occurs at a steady, unchanging rate over time.

Regressive

Regressive, in economic terms, often refers to a tax system where the tax rate decreases as the taxable amount increases, imposing a greater burden on lower-income individuals.

Marginal Tax Rate

The percentage of an increase in income that is taxed away.