The United States has net exports of -350 billion and the private ...

[fnuegbu]

The United States has net exports of -350 billion and the private sector balance is -400 billion. What is the government sector balance?
 
  What will be an ideal response?

Question 2

According to the Coase theorem, part of what is needed for private transactions to be efficient is that property rights
 
  A) must be defined, but it does not matter who owns the property.
  B) must be defined, and it is crucial as to who owns the property.
  C) need not be defined as long as there are no transactions costs present.
  D) need to be defined by the government to avoid producers from exploiting high transactions costs.

[Liamb2179]

Answer to Question 1

The sum of the private sector balance plus the government sector balance equals net exports. Therefore -350 billion = -400 billion + government sector balance, so the government sector balance is 50 billion.

Answer to Question 2

A

[fnuegbu]

Thank you

[Liamb2179]

No problemo