The Uses-Of-Saving Identity Shows That If the Government Budget Deficit

Multiple Choice

The uses-of-saving identity shows that if the government budget deficit rises,then which of the following must happen?

A) Private saving must rise,investment must fall,and/or the current account must fall.
B) Private saving must rise,investment must fall,and/or the current account must rise.
C) Private saving must rise,investment must rise,and/or the current account must fall.
D) Private saving must rise,investment must rise,and/or the current account must rise.