A net exports deficit or surplus equals
A) taxes minus savings plus public and private investment.
B) the government sector balance plus the private sector balance.
C) net lending by both the private and public sector plus savings minus investment.
D) net worth plus the government sector balance minus the private sector balance.

Question

Quizplus · Accepted Answer

Net exports deficit or surplus is essentially the difference between what a country exports and what it imports. This balance can be viewed as the sum of the government sector balance (government savings minus its investment) and the private sector balance (private savings minus private investment). When a country exports more than it imports, it has a surplus, and when it imports more than it exports, it has a deficit. This relationship is captured by the sectoral balances approach, which states that the sum of the balances of the private sector, government sector, and foreign sector (net exports) must equal zero.

A Net Exports Deficit or Surplus Equals