If there is no government and no foreign trade, then: | Economics | SolveeIt | Solveeit

Today, August 18

Question

If there is no government and no foreign trade, then:

A

$G = T = M = X >1$

B

G = T = M = X = 1

C

G = T = M = X = 0

D

$G = T = M = X <1$

Answer

G = T = M = X = 0

Explanation

Solution

In the absence of government and foreign trade, government spending (G), taxes (T), imports (M), and exports (X) all equal zero.