Question
Assume that Palau has a domestic investment of $1500billion, private domestic savings of $3000billion, and a government deficit of $3500. Based on the national saving
Assume that Palau has a domestic investment of $1500billion, private domestic savings of $3000billion, and a government deficit of $3500. Based on the national saving and investment identity, what is Palau's trade deficit if government spending rises by $1000billion? Enter your answer in billions ofdollars.
Trade deficit: $___?___ billion
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Principles of Economics
Authors: Gregory Mankiw
7th edition
128516587X, 978-1285165875
