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Until 2018, country A used to run trade deficits. This year, it has faced a sharp drop in imports. This drop has been larger than
Until 2018, country A used to run trade deficits. This year, it has faced a sharp drop in imports. This drop has been larger than the decline in A's exports, resulting in a small trade surplus this year. At the same time, the budget deficit of the government has widened, and private savings has remained unchanged, when compared to the past year. What must have happened to investment in A compared to last year?
a.Investment must have increased.
b.Investment must have decreased.
c.Investment must have remained unchanged.
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