If a country has Y C + I + G,then A)S I and it has a trade surplus. B)S I and it has a trade deficit. C)S

Question

If a country has Y > C + I + G,then A)S > I and it has a trade surplus. B)S > I and it has a trade deficit. C)S < I and it has a trade surplus. D)S < I and it has a trade deficit.

Quizplus · Accepted Answer

If Y > C + I + G, it implies that the country's total output (Y) is greater than its total domestic expenditure (C + I + G), indicating that the country is saving more than it is investing (S > I) and exporting more than it is importing, leading to a trade surplus.

If a Country Has Y > C + I