You Observe a Closed Economy That Has a Government Deficit

question 36

Multiple Choice

You observe a closed economy that has a government deficit and positive investment.Which of the following is correct?

• A)Private and public saving are both positive.
• B)Private saving is positive;public saving is negative.
• C)Private saving is negative;public saving is positive.
• D)Both private saving and public saving are negative.

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Definitions:

Collectivistic Culture

A societal framework in which individuals prioritize the needs and goals of the group over personal desires or ambitions.

Fundamental Attribution Error

The tendency to overestimate the effect of disposition or personality and underestimate the effect of the situation in explaining social behavior.

Vignettes

Short, descriptive pieces of writing or speech that capture a moment, character, or setting in a detailed way.

Dispositional Attribution

A psychological process whereby individuals attribute behavior to the internal characteristics of the agent, rather than to external factors.