Government budget deficit


A government budget deficit is financed by a combination of

(a) saving rising relative to domestic investment and imports rising relative to exports.

(b) saving rising relative to domestic investments and exports rising relative to imports.

(c) domestic investment rising relative to saving and imports rising relative to exports.

(d) domestic investment rising relative to saving and exports rising relative to imports.

In the above question, which do you think is correct and why. Briefly explain.

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Macroeconomics: Government budget deficit
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