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Consider Three Different Closed Economies with the Following National Income

Question 55

Multiple Choice

Consider three different closed economies with the following national income statistics.Country A has taxes of $40 billion,transfers of $20 billion,and government expenditures on goods and services of $30 billion.County B has private savings of $60 billion,and investment expenditures of $40 billion.Country C has GDP of $300 billion,investment of $90,consumption of $180 billion,taxes of $60 billion and transfers of $20 billion.From this information,we know that


A) country A has the largest government budget deficit.
B) country B has the largest government budget deficit.
C) country C has the largest government budget deficit.
D) The government budget deficit is equal in all three countries.

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