In a Closed Economy,if Y and T Remained the Same,but

question 41

Multiple Choice

In a closed economy,if Y and T remained the same,but G rose and C fell but by less than the rise in G,what would happen to public and national saving?

• A)public and national saving would rise
• B)public and national saving would fall
• C)public saving would rise and national saving would fall
• D)public saving would fall and national saving would rise

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Definitions:

Trade Sector

Refers to the part of a country's economic activity that is involved in the exchange of goods and services, domestically and internationally.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographical region.

Exports

Goods or services that are produced in one country and sold to customers in other countries.

Tariff

A tax on imported goods, usually designed to protect domestic industries and to generate revenue.