Suppose That the Economy Is in Equilibrium with the Government

question 129

Multiple Choice

Suppose that the economy is in equilibrium with the government budget in surplus and with exports less than imports.According to the circular flow model,

• A)saving must exceed investment
• B)saving must be less than investment
• C)saving must equal investment
• D)saving could be greater than or equal to investment
• E)it is impossible to determine anything about saving and investment using the given information

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Definitions:

Clinical Psychologist

A professional specializing in diagnosing and treating mental, emotional, and behavioral disorders through psychological techniques and therapies.

Clinical Social Worker

A mental health professional who uses counseling and therapies to help individuals deal with mental health or substance abuse issues within the context of their social environment.

Psychiatrist

A medical doctor who specializes in diagnosing and treating mental health conditions, often through medication and psychotherapy.

Aerobic Exercise

Physical activity that improves the efficiency of the cardiovascular system in absorbing and transporting oxygen.