In a small open economy if domestic private saving equals $50 billion, government saving equals-$20 billion, the trade balance is -$20 billion then Select an answer and submit For keyboard navigation, use the up/down arrow keys to select an answer. Domestic investment equals $50 billion and we are in a trade deficit a d Domestic investment equals $30 billion and we are in a trade deficit The government budget is in a surplus of $20 billion if the government budget deficit is lowered then domestic investment would decrease. X Your answer

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 46P: Imagine that the economy of Germany finds itself in the following situation: the government budget...
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In a small open economy if domestic private saving equals $50 billion, government saving equals-$20 billion, the trade balance is
-$20 billion then
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a Domestic investment equals $50 billion and we are in a trade deficit
b
C
d
Domestic investment equals $30 billion and we are in a trade deficit
The government budget is in a surplus of $20 billion
if the government budget deficit is lowered then domestic investment would decrease.
X
Your answer
Transcribed Image Text:In a small open economy if domestic private saving equals $50 billion, government saving equals-$20 billion, the trade balance is -$20 billion then Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Domestic investment equals $50 billion and we are in a trade deficit b C d Domestic investment equals $30 billion and we are in a trade deficit The government budget is in a surplus of $20 billion if the government budget deficit is lowered then domestic investment would decrease. X Your answer
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