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28 Sep 2019
1. Is the budget deficit of a country linked to its current account balance? If so, how so? If not, why not? Explain how it is possible for the United Statesâ current account deficit to grow while the budget deficit has disappeared. Hint: Thereâs an equation that will help answer this question.
2. When looking at a nationâs financial account, is it possible to determine the total amount of official reserves available to that nation? If so, explain why. If not, explain why not
3. What can you say about the sign of the financial account if the government budget is balanced, and S is greater than I? Why?
1. Is the budget deficit of a country linked to its current account balance? If so, how so? If not, why not? Explain how it is possible for the United Statesâ current account deficit to grow while the budget deficit has disappeared. Hint: Thereâs an equation that will help answer this question.
2. When looking at a nationâs financial account, is it possible to determine the total amount of official reserves available to that nation? If so, explain why. If not, explain why not
3. What can you say about the sign of the financial account if the government budget is balanced, and S is greater than I? Why?
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watching
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Joshua StredderLv10
28 Sep 2019