Question
6. (2 points) For partial credit, show your work. In a country, private savings equals 200, public savings equals 99, and the trade deficit equals
6. (2 points) For partial credit, show your work. In a country, private savings equals 200, public savings equals 99, and the trade deficit equals 54. What is the level of private investment (I) in this economy?
a (2 points) For partial credit, show your work. In a country, private investment equals 745, the government budget deficit equals 25 (in other words, public savings equals -25), and the trade deficit equals 120. What is the level of private savings (S) in this economy?
b. (2 points) For partial credit, show your work. Suppose that it is the year 1999 and the U.S. government has a budget surplus, although the economy is still experiencing a trade deficit. Private savings equals 19, the government surplus equals 499, and private investment equals 1,120. What is the level of the trade deficit (M-X) in this economy?
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