1. Consider an open economy in which private savings amount to 15% of GDP. Suppose that the budget deficit of the government is equal to 3% of GDP and that gross investment amounts to 12% of GDP. a. Derive the value of the trade balance (or formally the current account balance). b. How would your answer change if private investments accounted for 15% of GDP? c. Consider the following statement: In the situation described in c, the government is obliged to finance the public deficit by selling its bonds to foreign investors. True or false? d. Explain the changes in the Net International Investment Position of the country in a and c