deficit state
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A government budget deficit is financed by a combination of
(a) saving rising relative to domestic investment and imports rising relative to exports.
(b) saving rising relative to domestic investments and exports rising relative to imports.
(c) domestic investment rising relative to saving and imports rising relative to exports.
(d) domestic investment rising relative to saving and exports rising relative to imports.
In the above question, which do you think is correct and why. Briefly explain.
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Solution Summary
The output of a nation is emphasized.
Solution Preview
Let's define output of a nation = Y
personal consumption expenditures (C)
gross private domestic investment expenditures (I)
government purchases (G)
exports ...
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