Which One of the Following Is TRUE in an Open

question 169

Multiple Choice

Which one of the following is TRUE in an open economy with a government sector?

• A) The equilibrium level of real GDP occurs when real net export spending equals zero.
• B) The equilibrium level of real GDP occurs when planned real saving equals government spending.
• C) The equilibrium level of real GDP occurs when total planned real expenditures equal real GDP.
• D) The equilibrium level of real GDP occurs when planned real investment spending is zero.

---

Definitions:

2 Years

A period of two calendar years.

Compounded Semi-Annually

Applying interest to both the initial principal and accumulated interest twice a year.

65 Years

A time period equivalent to sixty-five years, often referenced in discussions of age or time to retirement.

Common Stock

A type of security that represents ownership in a corporation and gives holders voting rights, as well as a share in the company's profits via dividends.