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A particular economy has consumption of $400M, a government deficit of $100M, taxes of $250M, and income of $800M. Which of the following statements must

  1. A particular economy has consumption of $400M, a government deficit of $100M, taxes of $250M, and income of $800M. Which of the following statements must be true?

  1. If investment is zero, there is no foreign trade imbalance.
  2. If the trade surplus is $50M, investment will be equal to $100M.
  3. If the capital account surplus is $50M, investment will be equal to $100M.
  4. If the trade surplus is $100M, there will be investment.
  5. None of the above statements is necessarily true.

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