Is the economy experiencing a trade deficit why

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Reference no: EM131109615

For an economy with a tax rate of 10%, the following expenditure functions are given:

C = 60 + 0.8Yd

G = 400

I = 140

NX = 10 - 0.20Y

(a). Assume all taxes are collected. Is the Government experiencing a budget deficit in equilibrium? Why?

(b). Is the economy experiencing a trade deficit? Why?

Reference no: EM131109615

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