The decline in tax revenues and increased public expenditure due to the natural disaster are increasing the budget deficit of country A this year compared to last year. At the same time, country A has been running a large trade deficit and has to keep that deficit equal to its level last year. In this situation if the government wants to keep invest at the same level as last year, what should happen to the private savings in country A?

a.The private savings in A must increase by the same amount that the budget deficit increases.

b.The private savings in A must increase by more than the amount that the budget deficit increases.

c.The private savings in A must increase by less than the amount that the budget deficit increases.

d.The private savings in A must decrease by the same amount that the budget deficit increases.

e.The private savings in A must decrease by more than the amount that the budget deficit increases.