Question

Question 1: True, False or uncertain

Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. The quality and logic of arguments determine your marks. (4 marks each)

1. If the lockdown measure due to a further spread of COVID-19 pandemic is extended to international flows of goods and services across the Australian border, saving in the national income account must be equal to the investment in Australia.

Answer 1

JUST ONE LIKE OF UR'S WILL HELP US A LOT. SO PLEASE LIKE MY ANSWER. THANK YOU

ANSWER:

a) TRUE

REASON: If this covid-19 pandemic goes on increasing then lockdown may be extended in the country.

In such a case, if lockdown is got extended especially at the border, then both imports to the country and also exports from the country will be zero.

If imports are considered as (X), and exports are considered as (M), then

S - I = X - M.

As both exports and imports will be zero therefore,

S - I =0.

S = I.