In the circular flow of income model of an economy, Y, C, I, G, X, S, T and M stand for total income, consumption, investment, government expenditure, exports, saving, taxation and imports, respectively. Which statement is correct?
- AAt equilibrium, the levels of Y and C are always the same.
- BGovernments always adjust G so that the economy is in equilibrium.
- CIf I is not equal to S, it is still possible for the national income to be in equilibrium.
- DIf the national income is in equilibrium, X must be equal to M.