Which of the following is not a consequence of an increase in the government’s budget deficit?
A. private savings increases while holding everything else constant
B. exports increase while imports and all other variables are held constant
C. imports increase while exports and all other variables are held constant
D. investment falls while holding everything else constant
Answer:B
Which of the following is not a consequence of an increase in the government’s budget deficit?
A. private savings increases while holding everything else constant B. exports increase while imports and all other variables are held constant C. imports increase while exports and all other variables are held constant D. investment falls while holding everything else constant
Explanation: Type: Multiple Choice