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2) [2 point] According to the concept of a decline in a government's budget deficit will lead to little change in national savings because households
2) [2 point] According to the concept of a decline in a government's budget deficit will lead to little change in national savings because households will increase their spending today (reducing savings) in expectation of lower taxes in the future. 3) [10 points] Suppose that German households and corporations save $2 trillion (2,000 billion) and the German government runs a $600 billion budget surplus. If net exports are - $800 billion (negative 800 billion), what is the value of net capital inflows for Germany? What is the value of investment in Germany? Net capital flows: Investment
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