Multiple Choice
If the government started with a budget deficit and moved to a surplus, which of the following best describes the effects of these changes?
A) Domestic investment would rise, and the trade balance would move towards surplus.
B) Domestic investment would rise, and the trade balance would move towards deficit.
C) Domestic investment would fall, and the trade balance would move towards surplus.
D) Domestic investment would fall, and the trade balance would move towards deficit.
Correct Answer:
Verified
Correct Answer:
Verified
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