If a government experiences an increase in its budget surplus, which of the following possible outcomes will likely result?
A. investment falls while everything else holds constant
B. exports decrease while imports and all other variables are held constant
C. imports increase while exports and all other variables are held constant
D. private savings decrease while everything else holds constant
Answer:D
If a government experiences an increase in its budget surplus, which of the following possible outcomes will likely result?
A. investment falls while everything else holds constant B. exports decrease while imports and all other variables are held constant C. imports increase while exports and all other variables are held constant D. private savings decrease while everything else holds constant
Explanation: Type: Multiple Choice