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Suppose That a Mixed Open Economy Is Producing at Its

Question 133

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Suppose that a mixed open economy is producing at its equilibrium income and that net exports are zero.If at the equilibrium income the public sector's budget shows a surplus,


A) Ca + I g + Xn + G must exceed GDP.
B) planned investment must exceed saving.
C) a recessionary expenditure gap must exist.
D) saving must exceed planned investment.

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