If Private Saving Equals Private Investment and There Is a Trade

Multiple Choice

If private saving equals private investment and there is a trade deficit, there must be ________; this is called ________.

A) a net outflow of savings; the J-curve
B) a government budget deficit; the twin deficits
C) a government budget surplus; balanced trade
D) an excess supply of private savings; a budget surplus
E) an excess supply of private savings; the investment deficit