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A particular economy has consumption of $400M, a government deficit of $100M, taxes of $250M, and income of $800M. Which of the following statements must
- A particular economy has consumption of $400M, a government deficit of $100M, taxes of $250M, and income of $800M. Which of the following statements must be true?
- If investment is zero, there is no foreign trade imbalance.
- If the trade surplus is $50M, investment will be equal to $100M.
- If the capital account surplus is $50M, investment will be equal to $100M.
- If the trade surplus is $100M, there will be investment.
- None of the above statements is necessarily true.
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