To evaluate the size of the federal budget deficit or surplus ...

[MGLQZ]

To evaluate the size of the federal budget deficit or surplus over time, it would be best to look at the
 
  A) budget deficit or surplus as a percentage of tax revenues.
  B) budget deficit or surplus as a percentage of government spending.
  C) absolute size of the budget deficit or surplus.
  D) budget deficit or surplus as a percentage of GDP.

Question 2

Does the saving and investment equation imply that a country's national saving must always equal its domestic investment? Explain.
 
  What will be an ideal response?

[reversalruiz]

Answer to Question 1

D

Answer to Question 2

No. In an open economy, the saving and investment equation implies that a country's national saving must always equal domestic investment plus net foreign investment.