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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

Does a trade surplus help to guarantee strong economic growth?

To determine

The meaning of trade surplus and analysis whether it indicates a strong economic growth.

Explanation

The outcome of trade surplus i.e. whether it indicates strong economy with guarantee depends on the savings and investments.

Trade surplus=Domestic savings+Government savingsDomestic Investments(XM)=S+(T

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