Use the information below to answer the following questions.
Fact 9.4.1
You are given the following information about the country of Ecoland, whose currency is the turkey, and whose official settle balance is zero.

-Refer to Fact 9.4.1.What is the value of the private sector deficit or surplus?
A)+1 billion turkeys
B)- 2 billion turkeys
C)zero
D)- 1 billion turkeys
E)- 3 billion turkeys

Question

Use the information below to answer the following questions.
Fact 9.4.1
You are given the following information about the country of Ecoland, whose currency is the turkey, and whose official settle balance is zero.
 
-Refer to Fact 9.4.1.What is the value of the private sector deficit or surplus?
A)+1 billion turkeys 
B)- 2 billion turkeys 
C)zero 
D)- 1 billion turkeys 
E)- 3 billion turkeys

Quizplus · Accepted Answer

The private sector deficit or surplus is calculated as the difference between its savings and investments. If the private sector is saving more than it is investing, it has a surplus. If it is investing more than it is saving, it has a deficit. Without specific numbers from Fact 9.4.1, it's impossible to provide a detailed explanation, but the correct answer is chosen based on the information that would have been given in Fact 9.4.1.

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