2nd Edition

ISBN: 9781680920864

Author: Timothy Taylor, Steven A. Greenlaw, David Shapiro

Publisher: MCGRAW-HILL HIGHER EDUCATION

Textbook Question

Chapter 23, Problem 44P

Imagine that the U.S. economy finds itself in the following situation: a government budget deficit of $ 1 00 billion, total domestic savings of $ 1 , 5 00 billion, and total domestic physical capital investment of $ 1 , 6 00 billion. According to the national saving and Investment Identity, what will be the current account balance? What will be the current account balance if Investment rises by $ 5 0 billion, while the budget deficit and national savings remain the same?

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Chapter 23, Problem 43P

Chapter 23, Problem 45P

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