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- If there is no trade deficit, budget deficit =$500, what is the difference between savings and planned investment in equilibrium?What is current account deficit? List down, with detailed explanations, what causes current account deficit in the economy.A government decides to introduce an expenditure-switching measure to reduce a balance of trade deficit. Which of the following is an expenditure-switching measure? Pick a,b,c, or d A. A government subsidy to domestic producers B. An increase in income tax C. An increase in the rate of interest D.A decrease in state benefits