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A country finds itself in the following situation: a government budget deficit of $500; total domestic savings of $1310, and total domestic physical capital investment
A country finds itself in the following situation: a government budget deficit of $500; total domestic savings of $1310, and total domestic physical capital investment of $2100. According to the national saving and investment identity, if investment increases by $150 while the government budget deficit and savings remain the same, what will be the new value of the trade deficit after the change in investment
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