Which of the following statements is true?
A)If private investment is greater than private saving, then either the government or the net export sector must have a surplus.
B)If private investment is greater than private saving, then the private sector has a deficit.
C)If private saving is greater than private investment, then the private sector has a surplus.
D)All of the above answers are correct.

Question

Quizplus · Accepted Answer

All the statements are correct as they reflect the basic accounting identity in macroeconomics where the sum of private saving, government saving, and foreign saving (net exports) must equal private investment.

Which of the Following Statements Is True