Which of the following is inconsistent with the others?
A)Y - C - G I
B)this country had a trade surplus
C)the purchase of foreign assets by this country's residents exceed foreigner's purchases of this country's assets
D)this country's investment exceeded its domestic saving

Question

Which of the following is inconsistent with the others?
A)Y - C - G > I
B)this country had a trade surplus
C)the purchase of foreign assets by this country's residents exceed foreigner's purchases of this country's assets
D)this country's investment exceeded its domestic saving

Quizplus · Accepted Answer

Explanation: If a country's investment exceeds its domestic saving, it implies a trade deficit, which is inconsistent with the other options that suggest a trade surplus or net capital outflow.

Which of the Following Is Inconsistent with the Others