Question: Consider a small open economy in equilibrium with a zero current account balance. What happens to national saving, investment, and the current account balance in

Consider a small open economy in equilibrium with a zero current account balance. What happens to national saving, investment, and the current account balance in equilibrium if (20 points)

(a) future income rises?

business taxes rise?
government expenditures decline temporarily?
the future marginal product of capital rises?

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