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:

First Cause

A philosophical concept referring to the initial cause of a chain of events, often discussed in the context of the origin of the universe.

Controlled Experiment

An experiment in which all variables are kept constant except for the independent variable(s).

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure the effects of the treatment.

Experimental Group

A group in an experiment that receives the variable being tested.