According to classical theory, desired saving always equals ...

[EY67]

According to classical theory, desired saving always equals investment due to changes in
 
  A) prices.
  B) wages.
  C) the interest rate.
  D) taxes.

Question 2

Suppose that the government of Summerfield spends 2 trillion in 2015 and receives tax revenues of 1.5 trillion. Which of the following is TRUE?
 
  A) Summerfield has a budget surplus of 0.5 trillion.
  B) Summerfield has a budget deficit of 0.5 trillion.
  C) Summerfield has a trade deficit of 0.5 trillion.
  D) Summerfield has a trade surplus of 0.5 trillion.

[kaykay69]

Answer to Question 1

C

Answer to Question 2

B