-Using the Data in the Above Table, If the Private

$$\begin{array} { | l | l | } \hline \text { Item } & \begin{array} { l } \text { Billions of } \\\text { dollars }\end{array} \\\hline \text { Exp orts of goods and services, } X & 500 \\\hline \text { Imports of goods and services, } M & \\\hline \text { Net taxes, } T & 750 \\\hline \text { Government exp enditure, } G & \\\hline \text { Saving, } S & 1,000 \\\hline \text { Investment, } I & \\\hline\end{array}$$
-Using the data in the above table, if the private sector runs a surplus of $250 billion, imports will equal $1,000 billion if

A) government expenditure equals -$750 billion.
B) the government sector runs a deficit of $750 billion.
C) government expenditure equals -$1000 billion.
D) investment equals -$1000 billion.

Correct Answer:

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