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:

Nash Equilibrium Strategies

Situations in a non-cooperative game where each player's strategy is optimal given the strategies of all other players, and no player has anything to gain by changing only their own strategy.

Big Ten Football Coach

A head coach in American college football within the Big Ten Conference, one of the oldest Division I collegiate athletic conferences in the United States.

Gain Yards

In American football, the action or process of advancing the football towards the opponent's end zone, typically measured in yards.

Pure Strategy Equilibria

A situation in a game where players choose a single strategy and their choices result in an equilibrium.