Business
Business, 28.12.2019 00:31, trying2passs

Acountry finds itself in the following situation: the government budget surplus is 2% of its gdp; private savings is 30% of gdp; and physical investment is 33% of gdp. based on the national saving and investment identity, if private savings fall to zero, what will happen to this country's current account balance?
a. deficit increases from 2% to 32% of gdp
b. deficit increases from 1% to 31% of gdp
c. surplus of 1% drops to deficit of 29% of gdp
d. surplus of 2% drops to deficit of 28% of gdp

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Answers: 1

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Acountry finds itself in the following situation: the government budget surplus is 2% of its gdp;...

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