During the year, Japan had a current-account surplus of 98 billion. What is the gap between Japan’s national expenditure and its national income? Explain. What is the gap between Japan’s savings and its domestic investment? Explain. Suppose the Japanese government’s budget ran a 22 billion surplus during the year. What can you conclude about Japan’s private savings-investment balance for the year? Explain.

During the year, Japan had a current-account surplus of 98 billion. What is the gap between Japan’s national expenditure and its national income? Explain. What is the gap between Japan’s savings and its domestic investment? Explain. Suppose the Japanese government’s budget ran a 22 billion surplus during the year. What can you conclude about Japan’s private savings-investment balance for the year? Explain.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 44P: Imagine that the U.S. economy finds itself in the following situation: a government budget deficit...

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