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