These questions help you review the Introduction and the Ricardian model. For each statement, determine whether it's T/F, and then explain why.

Questions 3-4 are based on the following numbers for the Home country's national account Category Billions of dollars Consumption (personal consumption expenditures) 8000 Investment (gross private domestic investment) 1300 Government consumption (government expenditures) 2100 Exports 900 Imports 1750 NFLA +45 Net unilateral transfers -20 3. The Home country's current account (CA) equals -$850 b. 4. The Home country's total national savings is $475 b