Question

The difference between the amount the government collects and how much it spends is know as the______
When the preceding term is combined with all of the privately‑held savings from across the country, it is known as the_______
If the government spends more money than it takes in through taxes, it will experience a The net amount of funds coming into a country is the Answer Bank badget surplus national savings capital inflow budget deficit bdect balance If the government spends less money than it takes in through taxes, it will experience a_________

The fundamental relationship between savings and investment spending is that:
a. savings will decrease as investment spending increases.
b. savings will increase as investment spending decreases.
c. investment spending promises higher financial returns than.
d. investment spending and savings are always equal.

Answer 1

Answer: The answers are provided below.

Explanation:

Budget balance is the difference between the amount received by the government and its expenses.

National saving occurs when the budget balance is added to all privately held savings from across the nation.

Budget deficit occurs when government expenditure is more than government revenue. It is when the government spends more than it receives.

Capital inflow is the net amount of money that comes into a country.

Budget surplus occurs when the government expenses are less than the government revenue made through taxes.

The fundamental relationship between savings and investment is that they are both equal. As savings increase, investment will decrease and when investment increase, savings decrease. Hence, the correct option is D.

Answer 2

Answer:

1. Budget balance

2. National Savings

3. Government Budget Surplus

The fundamental relationship between savings and investment spending is that:

C. investment spending promises higher financial returns than savings