Consider Three Different Closed Economies with the Following National Income

question 13

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 $40 billion.Country C has GDP of $300 billion,investment of $90,consumption of $180 billion,taxes of $60 billion and transfers of $20 billion.From this information,we know that

• A)country A has the largest government budget deficit.
• B)country B has the largest government budget deficit.
• C)country C has the largest government budget deficit.
• D)The government budget deficit is equal in all three countries.

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, assigning weights to each number.

Expected Time

The estimated time assumed for the completion of a task or project, often used in planning and scheduling.

Optimistic

A mindset or attitude that tends to expect the most favorable outcomes of situations or believes that good ultimately predominates over evil in the world.

Pessimistic

A tendency to anticipate unfavorable outcomes or emphasize the negative aspects of a situation.