A country's current account balance is equal to its private savings surplus minus its government budget deficit. Assume that a country has a current account surplus of $10000, a government budget deficit of $1500, and private savings of %12000. Questions: A. What is the country's private investment? Is the country saving more or less than is needed to finance its private investment and budget deficit? B. Most developing countries have incurred huge balance of payments deficits for mahy years. what alternatives are available to these countries for dealing with their balance of payments problems?

Answer rating: 100% (QA)

A To find the countrys private investment we can use the formula Private Investment Private Savings ... View the full answer