If Private Saving Equals Private Investment and There Is a Trade

question 83

Multiple Choice

If private saving equals private investment and there is a trade deficit, there must be ________; this is called ________.

• A) a net outflow of savings; the J-curve
• B) a government budget deficit; the twin deficits
• C) a government budget surplus; balanced trade
• D) an excess supply of private savings; a budget surplus
• E) an excess supply of private savings; the investment deficit

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