Imagine that the economy of Germany finds itself in the following situation: the government budget has a

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Imagine that the economy of Germany finds itself in the following situation: the government budget has a surplus of 1% of Germany’s GDP; private savings is 20% of GDP; and physical investment is 18% of GDP.

a. Based on the national saving and investment identity, what is the current account balance?

b. If the government budget surplus falls to zero, how will this affect the current account balance?

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Principles Of Economics

ISBN: 9781506699868

2nd Edition

Authors: OpenStax

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Question Posted: Nov 01, 2023 04:44 AM

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Imagine that the economy of Germany finds itself in the following situation: the government budget has a

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a Based on the national saving and investment identity the current account balance CAB can be calcul...View the full answer

Principles Of Economics

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