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Author Question: To evaluate the size of the federal budget deficit or surplus over time, it would be best to look at ... (Read 88 times)

MGLQZ

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on: Jun 29, 2018
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

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Reply #1 on: Jun 29, 2018
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.


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