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18.4 The national saving and investment identity  (Page 7/16)

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  • Card 7 / 16:
    Using the national savings and investment identity, explain how each of the following changes ( ceteris paribus ) will increase or decrease the trade balance:

    A lower domestic savings rateThe government changes from running a budget surplus to running a budget deficitThe rate of domestic investment surges

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Practice FlashCards 11 Key Terms 1

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Source:  OpenStax, Principles of macroeconomics. OpenStax CNX. Jan 09, 2015 Download for free at http://legacy.cnx.org/content/col11750/1.2
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