If Saving Is Greater Than Domestic Investment,then

question 80

Multiple Choice

If saving is greater than domestic investment,then

• A)there is a trade deficit and Y > C + I + G.
• B)there is a trade deficit and Y < C + I + G.
• C)there is a trade surplus and Y > C + I + G.
• D)there is a trade surplus and Y < C + I + G.

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Definitions:

Demand

The desire for a particular good or service, backed by the ability and willingness to pay for it.

Supply

The total amount of a good or service available for purchase at any given price level.

Total Surplus

The sum of consumer surplus and producer surplus in a market; it represents the total net benefit to society from the production and consumption of a good.

Equilibrium

Describes a state in a market where the quantity of a product supplied is equal to the quantity of the product demanded, leading to a stable price.