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 1

The Correct Option is C

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