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Deciphering Economic Gears: Calculating Private Investment

Chapter 31, Problem 1

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QUESTION:

In a country, private savings equals 600, the government budget surplus equals 200, and the trade surplus equals 100. What is the level of private investment in this economy?

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QUESTION:

In a country, private savings equals 600, the government budget surplus equals 200, and the trade surplus equals 100. What is the level of private investment in this economy?

ANSWER:

Step 1 of 2

In this case, we are given:

Private Savings = 600

Government Budget Surplus = 200

Trade Surplus = 100

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Deciphering Economic Gears: Calculating Private Investment
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Discover the intricate components of an economy, including savings, budgets, and trade balances. Learn how these elements interconnect and influence private investment. Understand an economic identity that determines an economy's investment levels.


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