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Consider the following scenario in the hypothetical country of Zootopia: The government budget deficit is $80 billion, total domestic savings amount to $1,200 billion, and
Consider the following scenario in the hypothetical country of Zootopia: The government budget deficit is $80 billion, total domestic savings amount to $1,200 billion, and total domestic physical capital investment is $1,300 billion. According to the national saving and investment identity, what will be the current trade balance? Additionally, suppose investment increases by $30 billion while the budget deficit and national savings remain unchanged. What will be the new current trade balance
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