Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Chapter 31, Problem 2SCQ

Assume an economy has a budget surplus of 1 , 000 , private savings of 4 , 000 , and investment of 5 , 000 .

  1. Write out a national saving and investment identity for this economy.
  2. What will be the balance of trade in this economy?
  3. If the budget surplus changes to a budget deficit of 1 000 k with private saving and investment unchanged, what Is the new balance of trade In this economy?

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Principles of Economics 2e

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