Define the savings-investment identity

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1. Define the savings-investment identity, being sure to discuss each of the components in the identity. Explain how it can help us predict the flow of loanable funds either in or out of our economy.

2. Explain how we measure trade deficits in the U.S. Explore the relationship between trade deficits and foreign capital inflow. Explore the relationship between trade deficits and government budget deficits.

Reference no: EM132051630

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