1. Explain whether each of the following statements is true or false for an open economy. a....

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1. Explain whether each of the following statements is true or false for an open economy.

a. If the budget balance has a value of zero, then private savings must be equal to investment spending.

b. If net capital inflow is positive, then national savings must be less than investment spending.

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Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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