Multiple choice question In a small economy the difference between saving and investment determines: a. real exchange rate. b. net exports and net capital outflow. c. taxes. d. government expenditures.

Multiple choice question In a small economy the difference between saving and investment determines: a. real exchange rate. b. net exports and net capital outflow. c. taxes. d. government expenditures.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 4CQQ

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

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Multiple choice question

In a small economy the difference between saving and investment determines:

a. real exchange rate.
b. net exports and net capital outflow.
c. taxes.
d. government expenditures.

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