Suppose That GDP Is Equal to 1000,national Saving Is Equal

question 30

Multiple Choice

Suppose that GDP is equal to 1000,national saving is equal to 200,the current account deficit is equal to 100,and the government budget deficit is equal to 50. Private savings must equal

• A) 150.
• B) 200.
• C) 250.
• D) 300.

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Definitions:

Dividend Policy

Dividend policy is the set of guidelines a company follows in deciding how much of its profit will be distributed to shareholders as dividends and how much will be reinvested in the business.

New Equity

New equity refers to funds raised by a company through the issuance of additional shares of stock.

Compromise Policy

A strategy aimed at finding a middle ground among different stakeholders' interests or policy alternatives.

Dividend Policy

A company's strategy or set of guidelines for distributing earnings to shareholders in the form of dividends.