If Private Saving Equals Private Investment and There Is a Trade

question 22

Multiple Choice

If private saving equals private investment and there is a trade deficit, there must be a(n) ________; this is called ________.

• A) net outflow of savings; the J-curve
• B) government budget deficit; the twin deficits
• C) government budget surplus; balanced trade
• D) excess supply of private savings; a budget surplus
• E) excess supply of private savings; the investment deficit

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Definitions:

Animism

The belief that objects, places, and creatures all possess a distinct spiritual essence or soul.

Concrete Operational Stage

A developmental phase in children, identified by Jean Piaget, typically occurring between ages 7 and 12, where children begin to think logically about concrete events.

Cognitive Development

Cognitive development is the process by which individuals acquire and evolve in their thinking abilities, from infancy through adulthood, encompassing reasoning, memory, problem-solving, and decision-making skills.

Equal Amounts

Refers to a situation where two or more entities possess the same quantity or measure of something.