Solved

In an Open Economy, the Government Deficit Is 600 and Saving

Question 21

Multiple Choice

In an open economy, the government deficit is 600 and saving exceeds investment by 500, so in equilibrium the trade deficit (IM − X) must be

A) 100
B) 200
C) 300
D) 700

Related Questions

Q16: A favorable supply shock abroad would<br>A)increase U.S.imports

Q18: Economic theory shows that the current account

Q19: International capital flows are purchases and sales

Q20: Booms or recessions in one country tend

Q22: One of the principal factors behind the

Q23: Figure 36-8<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-8

Q24: If the government budget is balanced, and

Q25: An economic boom in the United States

Q26: What are the results of a contractionary

Q190: If a currency appreciates,a country's net exports<br>A)fall