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Using the national saving and investment identity, if private savings equal $3200, private investment equals $7800, and the government budget deficit equals $3300, what does the inflow of foreign savings equal

Sagot :

The  inflow of foreign savings equal $7700.

Foreign savings

Using this formula

Foreign savings=Private saving  +Private investment- Government budget deficit

Let plug in the formula

Foreign savings=$3200+$7800-$3300

Foreign savings=$7700

Therefore foreign savings equal $7700.

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