Excessive current account surpluses, International Economics

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Q. Using an equation, explain why governments prefer to avoid excessive current account surpluses.

Answer: This pursue from the national income identity S = CA + I which says that total domestic savings S is divided among foreign asset accumulation CA and domestic investment I.


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Excessive current account surpluses, Q. Using an equation, explain why gove...

Q. Using an equation, explain why governments prefer to avoid excessive current account surpluses. Answer: This pursue from the national income identity S = CA + I which says

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