If a country's savings remain constant and the trade balance (net exports) increases, then: A) GDP increases. B) Consumption increases. C) Investment decreases. D) Spending decreases. E) Investment increases. with explanation please

If a country's savings remain constant and the trade balance (net exports) increases, then: A) GDP increases. B) Consumption increases. C) Investment decreases. D) Spending decreases. E) Investment increases. with explanation please

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter18: Globalization

Section: Chapter Questions

Problem 3E

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

Question

If a country's savings remain constant and the trade balance (net exports) increases, then:

A) GDP increases.

B) Consumption increases.

C) Investment decreases.

D) Spending decreases.

E) Investment increases.

with explanation please

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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