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Which of the Following Correctly Describes the Relationship Between Savings,the

Question 8

Multiple Choice

Which of the following correctly describes the relationship between savings,the government budget balance,and the current account?


A) Private savings plus the government budget balance must equal private investment plus the current account.
B) Private savings plus the current account must equal private investment plus the government budget surplus or deficit.
C) Private savings plus private investment must equal the current account plus the government budget balance.
D) Private investment must equal private savings plus the current account minus the government budget balance.

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