Assume That an Economy Is in Equilibrium with a Budget

question 35

Multiple Choice

Assume that an economy is in equilibrium with a budget deficit of $130 billion, positive net exports of $453 billion, and a saving level of $1, 550 billion.If taxes are zero, then planned investment spending must be equal to:

• A)$1, 550 billion.
• B)$130 billion.
• C)$1, 873 billion.
• D)$1, 227 billion.
• E)$967 billion.

---

Definitions:

Diagnostic Criteria

A set of standardized guidelines used to identify and classify diseases or disorders.

Family History

The health and medical histories of relatives, which can indicate an individual's risk for certain genetic or hereditary conditions.

Frequency

In psychology, often refers to the rate at which a behavior occurs within a certain period of time, important in the study of behavior patterns.

Prognosis

The anticipated progression or outcome of a patient's condition based on current knowledge and trends.