Assume an economy has a budget surplus of 1,000, private savings of 4,000, and investment of 5,000.

Question:

a. Write out a national saving and investment identity for this economy.

b. What will be the balance of trade in this economy?

c. If the budget surplus changes to a budget deficit of 1000, with private saving and investment unchanged, what is the new balance of trade in this economy?

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Principles Of Economics

ISBN: 9781506699868

2nd Edition

Authors: OpenStax

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Question Posted: Nov 01, 2023 02:54 AM

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Assume an economy has a budget surplus of 1,000, private savings of 4,000, and investment of 5,000.

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a Since the government has a budget surplus the government budget term appears with the ...View the full answer

Principles Of Economics

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