A country finds itself in the following situation: a government budget surplus of $970; total domestic...
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A country finds itself in the following situation: a government budget surplus of $970; total domestic savings of $880, and total domestic physical capital investment of $1320. According to the national saving and investment identity, if investment increases by $700 while the government budget surplus and savings remain the same, what will be the new value of the trade deficit after the investment increase? A country finds itself in the following situation: a government budget surplus of $970; total domestic savings of $880, and total domestic physical capital investment of $1320. According to the national saving and investment identity, if investment increases by $700 while the government budget surplus and savings remain the same, what will be the new value of the trade deficit after the investment increase?
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