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-Using the Data in the Above Table, If Saving Equals

Question 271

Multiple Choice

 Item  Billions of  dollars  Exp orts of goods and services, X Imports of goods and services, M1,000 Net taxes, T Government exp enditure, G1,300 Saving, S Investment, I650\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 & \\\hline \text { Imports of goods and services, } M & 1,000 \\\hline \text { Net taxes, } T & \\\hline \text { Government exp enditure, } G & 1,300 \\\hline \text { Saving, } S & \\\hline \text { Investment, } I & 650 \\\hline\end{array}
-Using the data in the above table, if saving equals $650 billion and exports are greater than imports,


A) net taxes will be less than $650 billion.
B) net taxes will be greater than $1300 billion.
C) the government sector must run a deficit.
D) government expenditures must increase.

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