The Table below provides hypothetical data on macroeconomic accounts for three countries represented by A, B, and C, and measured in billions of currency units. S = private household saving; T = taxes; G= government spending; and I = investment. (Assume R and U = 0.)

R and U = 0	A	B	C
S=private household saving	7000	5000	7000
T=taxes	3000	5000	5000
G=government spending	6000	3500	6500
I=investments	8000	4000	4500

Calculate the Current Account balance for each country. (Remember, the current account balance = (X – M), since we’re assuming that R and U = 0. And

(X-M) = National Saving – I, where National Saving = Public Saving (T-G) + S.

Answer: Country A Country B Country C

State whether each nation has a current account surplus or deficit.

Answer: Country A Country B Country C

So which nation(s) have positive foreign saving?

Answer:

Which nation(s) have positive foreign investment?

Answer: