What is the value of gross private domestic investment

Reference no: EM13181732

Assume that gross private domestic investment is $800 billion and the government (state, local, and federal combined) is currently running at $400 billion deficit. If households and business are saving $1,000 billion, what is the value of net exports? Use equation T-G = (I + NX) - S to explain your answer.

G =T = Taxes

G = gov't purchases of goods & services
I = private domestic investment
NX = net exports
S = private savings

Reference no: EM13181732

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