*A country finds itself in the following situation: a government budget deficit of $800; total domestic savings of $1800, and total domestic physical capital investment of $1300. According to the national saving and investment identity, what is the current account balance?
A. deficit of $1300
B. surplus of $300
C. deficit of $300
D. surplus of $1300
Answer:C
*A country finds itself in the following situation: a government budget deficit of $800; total domestic savings of $1800, and total domestic physical capital investment of $1300. According to the national saving and investment identity, what is the current account balance?
A. deficit of $1300 B. surplus of $300 C. deficit of $300 D. surplus of $1300
Explanation: Type: Multiple Choice