Question from 2000 to 2002 the sharp decline in capital, Ask an Expert

Economics

Question: From 2000 to 2002, the sharp decline in capital spending was almost completely matched by the sharp decline in government saving.

(A) How do you think the overall economy would have responded? However, suppose government saving had not declined.

(B) How would ex post investment and saving have been balanced under those conditions?

(C) What do you think would have happened to foreign saving? Would the change have occurred mainly in exports or imports?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93113882

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