What was excess of national spending over national income

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Reference no: EM131278533

During the Reagan era, 1981-1988, the U.S. current account moved from a tiny surplus to a large deficit. The following table provides U.S. macroeconomic data for that period.

a. Based on these data, to what extent would you attribute the changes in the U.S. current-account balance to a decline in the U.S. private saving-investment balance?

b. To what extent would you attribute the changes in the U.S. current-account balance to an increase in the U.S. government budget deficit?

c. Based on these data, what was the excess of national spending over national income during this period?

Reference no: EM131278533

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