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ustify your answer: [Assume households either consume or save their income only.] a)If the private sector is balanced and transfers are held constant, an increase in taxes implies a decrease in net exports. b)An increase in disposable personal income must imply an increase in private investment. c)Holding the government budget deficit constant, an increase in net exports must imply an increase in disposable income.

ustify your answer: [Assume households either consume or save their income only.] a)If the private sector is balanced and transfers are held constant, an increase in taxes implies a decrease in net exports. b)An increase in disposable personal income must imply an increase in private investment. c)Holding the government budget deficit constant, an increase in net exports must imply an increase in disposable income.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Using what you know about national income accounting, answer the following as true, false, or uncertain and justify your answer: [Assume households either consume or save their income only.]

a)If the private sector is balanced and transfers are held constant, an increase in taxes implies a decrease in net exports.

b)An increase in disposable personal income must imply an increase in private investment.

c)Holding the government budget deficit constant, an increase in net exports must imply an increase in disposable income.

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