When government policy moves from a budget surplus to a budget deficit and the trade deficit remains constant:
A. savings will decrease no matter what happens to investment.
B. savings will decrease if investment remains constant.
C. investment will increase if savings also remains constant.
D. investment will decrease if savings also remains constant.
Answer:D
When government policy moves from a budget surplus to a budget deficit and the trade deficit remains constant:
A. savings will decrease no matter what happens to investment. B. savings will decrease if investment remains constant. C. investment will increase if savings also remains constant. D. investment will decrease if savings also remains constant.
Explanation: Type: Multiple Choice