Answered: If there is no trade deficit, budget…

If there is no trade deficit, budget deficit =$500, what is the difference between savings and planned investment in equilibrium?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter20: The Global Economy

Section: Chapter Questions

Problem 16AA

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Question

If there is no trade deficit, budget deficit =$500, what is the difference between savings and planned investment in equilibrium?

Definition Definition Situation in which a country spends more on imports than it makes through exports. When a trade deficit exists, net exports will be negative. Trade Deficit = (Imports) - (Exports)

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