I and T are fixed (I=Io and T=to), so we know that if households attempt to save more, cet. par., Private saving will rise and the government budget deficit (GBD) will fall. Private saving will fall and the GBD will rise. Private saving will not change, but the GBD will rise. none of the above    Provide appropriate name(s) and explain using I=sum of Saving

Principles of Macroeconomics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter13: Savings,Investment And The Financial System
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I and T are fixed (I=Io and T=to), so we know that if households attempt to save more, cet. par.,

  1. Private saving will rise and the government budget deficit (GBD) will fall.
  2. Private saving will fall and the GBD will rise.
  3. Private saving will not change, but the GBD will rise.
  4. none of the above

 

 Provide appropriate name(s) and explain using I=sum of Saving.

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