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Suppose That the Economy Is in Equilibrium, with the Government

Question 108

Multiple Choice

Suppose that the economy is in equilibrium, with the government budget in surplus and with saving greater than investment.According to the circular-flow model, how do imports relate to exports?  


A)  Imports must exceed exports. 
B)  Imports must be less than exports. 
C)  Imports must equal exports. 
D)  Imports could be greater than or equal to exports.

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