If Saving Is Greater Than Domestic Investment,then

question 80

Multiple Choice

If saving is greater than domestic investment,then

• A)there is a trade deficit and Y > C + I + G.
• B)there is a trade deficit and Y < C + I + G.
• C)there is a trade surplus and Y > C + I + G.
• D)there is a trade surplus and Y < C + I + G.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often documented in the income statement as a non-operating expense.

Annual Payment

A sum of money paid or received once every year, often related to loans, leases, or annuity contracts, as part of the terms of agreement.

Market Rate

The current price or cost of a good or service in the marketplace, often used in reference to interest rates or wages.

Contract Rate

The agreed-upon price or rate specified in a contract for services or goods, often locked in for the duration of the agreement.