Question

if a company economy records a surpluses, how will the x and m components be represented in its rational savings and investment identity​

Answer 1

Answer:

Explain the determinants of trade and current account balance

Identify and calculate supply and demand for financial capital

Explain how a nation’s balance of trade is determined by that nation’s own level of domestic saving and investment

Predict the rising and falling of trade deficits based on a nation’s saving and investment identity

The close connection between trade balances and international flows of savings and investments leads to a macroeconomic analysis. This approach views trade balances—and their associated flows of financial capital—in the context of the overall levels of savings and financial investment in the economy.

Understanding the Determinants of the Trade and Current Account Balance

Explanation:

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