Solved: Imagine that the economy of Germany finds itself in the following situation: the
Chapter 23, Problem 46(choose chapter or problem)
Imagine that the economy of Germany finds itself in the following situation: the government budget has a surplus of 1% of Germanys GDP; private savings is 20% of GDP; and physical investment is 18% of GDP. a. Based on the national saving and investment identity, what is the current account balance? b. If the government budget surplus falls to zero, how will this affect the current account balance?
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