Question: Evaluate the following statements as true/false/uncertain and explain your answer carefully. Please use diagrams and/or algebra when answering the question, when appropriate. 1. If the

Evaluate the following statements as true/false/uncertain and explain your answer carefully.

Please use diagrams and/or algebra when answering the question, when appropriate.

1. If the trade surplus is fixed, and private savings is fixed, then any increase in actual investment will reduce the primary government budget deficit. (5 marks)

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