LO 5 Consider the identity Sp - I = CA + D, where Sp is private sector

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LO 5 Consider the identity Sp - I = CA + D, where Sp is private sector saving, I is investment, CA is the current account surplus, and D is the government deicit.

(a) Show that the above identity holds.

(b) Explain what the above identity means.

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Macroeconomics

ISBN: 9781292215792

6th Global Edition

Authors: Stephen Williamson

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