If All Government Budgets Are Balanced,and S Is Greater Than

question 82

Multiple Choice

If all government budgets are balanced,and S is greater than I,then

• A)the net international investment position must be positive.
• B)the financial account must be positive.
• C)the financial account must be negative.
• D)the net international investment position must be negative.

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Definitions:

Substitute for Wheat

A comparable alternative to wheat, such as barley, rice, or corn, used in various food products or for feed.

Invisible Hand Principle

A metaphor described by Adam Smith to illustrate how individuals pursuing their own self-interest can benefit society overall, as if guided by an unseen hand.

Allocation of Resources

The process of distributing available resources among various competing needs and uses to achieve desired objectives and outcomes.

Self-Interest

The action of working towards one's personal advantage, often considered a driving force behind economic decisions.