The correct answer is Option (3) → $G=T=M=X=0$
Here's why:
G = Government Spending: Since there's no government, there wouldn't be any govt spending. So, G = 0.
T = Taxes Collected: With no government, there wouldn't be any taxes to collect. Thus, T = 0.
M = Imports: If there's no foreign trade, there wouldn't be any imports. Therefore, M = 0.
X = Exports: Similarly, without foreign trade, there wouldn't be any exports. So, X = 0.
In a closed economy with no government (and hence no taxes), all these variables would be zero. |
