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Q. Suppose which gross private domestic investment is $800B also the government (state, local also federal combined) is currently running over a $400B deficit. If households also businesses are saving $1,000B, illustrate what is the value of net exports? Use equation (2.6) to explicate your answer.
Equation 2.6 (pg.35): T - G = (I + NX) - ST = G = gov't purchases of goods & servicesI = private domestic investmentNX = net exports S = private savings
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