In a small open economy if domestic private saving equals $50 billion, government saving equals-$20 billion, the trade balance is -$20 billion then Select an answer and submit For keyboard navigation, use the up/down arrow keys to select an answer. Domestic investment equals $50 billion and we are in a trade deficit a d Domestic investment equals $30 billion and we are in a trade deficit The government budget is in a surplus of $20 billion if the government budget deficit is lowered then domestic investment would decrease. X Your answer
In a small open economy if domestic private saving equals $50 billion, government saving equals-$20 billion, the trade balance is -$20 billion then Select an answer and submit For keyboard navigation, use the up/down arrow keys to select an answer. Domestic investment equals $50 billion and we are in a trade deficit a d Domestic investment equals $30 billion and we are in a trade deficit The government budget is in a surplus of $20 billion if the government budget deficit is lowered then domestic investment would decrease. X Your answer
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 46P: Imagine that the economy of Germany finds itself in the following situation: the government budget...
Related questions
Question
![In a small open economy if domestic private saving equals $50 billion, government saving equals-$20 billion, the trade balance is
-$20 billion then
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a Domestic investment equals $50 billion and we are in a trade deficit
b
C
d
Domestic investment equals $30 billion and we are in a trade deficit
The government budget is in a surplus of $20 billion
if the government budget deficit is lowered then domestic investment would decrease.
X
Your answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7835bca-b016-4d56-8f2b-4b126ab369d0%2F793accf3-c4da-49ee-9be3-cb92e9c1c338%2Fjs4ui1d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In a small open economy if domestic private saving equals $50 billion, government saving equals-$20 billion, the trade balance is
-$20 billion then
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a Domestic investment equals $50 billion and we are in a trade deficit
b
C
d
Domestic investment equals $30 billion and we are in a trade deficit
The government budget is in a surplus of $20 billion
if the government budget deficit is lowered then domestic investment would decrease.
X
Your answer
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781285165912/9781285165912_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Brief Principles of Macroeconomics (MindTap Cours…](https://www.bartleby.com/isbn_cover_images/9781337091985/9781337091985_smallCoverImage.gif)
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781285165912/9781285165912_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Brief Principles of Macroeconomics (MindTap Cours…](https://www.bartleby.com/isbn_cover_images/9781337091985/9781337091985_smallCoverImage.gif)
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971509/9781305971509_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Economics:](https://www.bartleby.com/isbn_cover_images/9781285859460/9781285859460_smallCoverImage.gif)