Solved

Suppose That the Economy Is in Equilibrium, with the Government

Question 113

Multiple Choice

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


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions