-Using the Data in the Above Table, If Saving Equals

question 267

Multiple Choice

-Using the data in the above table, if saving equals $650 billion and exports are greater than imports,

• A) the government sector must run a deficit.
• B) net taxes will be greater than $1,300 billion.
• C) net taxes will be less than $650 billion.
• D) government expenditures must increase.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to outside parties, which must be paid back in the future.

Liabilities

Financial obligations or debts that an entity owes to others, which need to be settled over time via the transfer of economic benefits.

Creditors

Individuals or entities that a company owes money to for goods or services that have been delivered but not yet paid for.

Debtors

Individuals or companies that owe money to another party, often referred to in the context of accounts receivable.