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Effects of a government budget deficit Suppose a hypothetical open economy uses the U . S . dollar as currency. The table below presents data
Effects of a government budget deficit Suppose a hypothetical open economy uses the US dollar as currency. The table below presents data describing the relationship between different real interest rates and this economys levels of national saving, domestic investment, and net capital outflow. Assume that the economy is currently operating under a balanced government budget. 
Effects of a government budget deficit
Suppose a hypothetical open economy uses the US dollar as currency. The table below presents data describing the relationship between different real interest rates and this economys levels of national saving, domestic investment, and net capital outflow. Assume that the economy is currently operating under a balanced government budget.
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