1). In five or more sentences, present the importance of the balance of payments for countries. Justify this argument. (20 points)

2) If a nation's income exceeds its expenses, savings will be equal to national investment. Justify this argument.  (20 points)

3) A nation that has a savings deficit will invest more nationally than it saves. Justify this argument.  (20 points)

4) To reduce its current account deficit, the USA must NOT reduce savings in relation to national investment.

 Justify this argument.  (20 points)

Answer rating: 100% (QA)

Answer 1 The balance of payments is crucial for countries as it provides a comprehensive overview of a nations economic transactions with the rest of the world It comprises the current account capital ... View the full answer