问题如下:
All else equal, which of the following was not a factor to increase the government deficit?
选项:
A.an increase in the excess of private saving over private investment.
B.an increase in net export.
C.a increase in trade deficit
解释:
B is correct.
The fiscal balance equation is given as: (G-T)=(S-I)-(X-M), An increase in government deficit (G-T) is a combination of increase in private saving over private investing (S-I) and a decrease of trade deficit or net export (X-M).
考点:Relationship between Income Approch and Expenditure Approach
解析:
财政平衡方程为:(G-T)=(S-I)-(X-M),政府赤字(G-T)的增加的同时,私人储蓄增加超过私人投资(S-I),或者贸易赤字或净出口(X-M)减少,所以AC选项不入选,B选项入选。
X-M<0,then trade deficit.trade deficit increases,thenX-M的数值变小(for example,-1变成-2,then-(X-M)从+1变为+2),then G-T变大
这样理解对不对?