Suppose That the Economy Is in Equilibrium with a Trade

question 128

Multiple Choice

Suppose that the economy is in equilibrium with a trade surplus and with saving less than investment.According to the circular flow model,the government's budget

• A)must be in deficit
• B)must be in surplus
• C)must be balanced
• D)could be in a surplus or a deficit
• E)could be in balance or a surplus

---

Definitions:

Liquefied Natural Gas

Natural gas that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport.

Variable Rate

A variable rate refers to an interest rate that changes periodically over the life of a loan or financial instrument based on an underlying benchmark interest rate or index.

Mortgage Notes

Legal documents that bind a borrower to repay a lender for a property loan, detailing the terms of the loan agreement.

Fluctuating

Experiencing frequent, irregular changes in level, quantity, or value.