Consider Three Different Closed Economies with the Following National Income

question 33

Multiple Choice

Consider three different closed economies with the following national income statistics. Country A has taxes of $40 billion, transfers of $20 billion, and government expenditures on goods and services of $30 billion. County B has private savings of $60 billion, and investment expenditures of $50 billion. Country C has GDP of $300 billion, investment of $70, consumption of $180 billion, taxes of $60 billion and transfers of $20 billion. From this information we know that there is a $10 billion government budget deficit for

• A)only country A.
• B)only country B.
• C)only country C.
• D)all three countries.

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Definitions:

Brunelleschi

Filippo Brunelleschi was an Italian architect and engineer, recognized for his work on the Florence Cathedral's dome, and his role in developing Renaissance architecture.

Interior

The internal part or inside space of something, such as a building or vehicle.

Consumer Price Index

An index measuring the change in the price level of a basket of consumer goods and services purchased by households.

Year 3 Dollars

Year 3 dollars refer to the value of money adjusted for price changes (inflation or deflation) to a specific year's average price level, often used for comparison over different times.