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Economics

A particular economy has consumption of$400 million, a government deficit of $100 million, taxes of $250 million, and income of $800 million. Which of the following statements must be true?

A. if investment is zero, there is no foreign trade imbalance

B. If the trade surplus is $50 million, investment will be equal to $100 million

C. if the capital account surplus is $50 million, investment will be equal to $100 million

D. if the trade surplus is $100 million, there will be investment

E. none of the above statements is necessarily true

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91705712

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