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In the National Savings and Investment Identity, which can b…
In the Nаtiоnаl Sаvings and Investment Identity, which can be written as [оptiоn1], the supply of financial capital is represented by [option2], whereas the demand of financial capital is represented by [option3]. Using this identity, if a country’s budget surplus is $900, savings is $2,000, and investment is $1,300, this country is having a [option4]. But if the budget surplus change to a budget deficit of $900, while the other components remain the same, the new current account balance for this country would be a trade [option5].