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The National Saving and Investment IdentityStudent View (Opens in new window)
By the end of this section, you will be able to:
- Explain the determinants of trade and current account balance
- Identify and calculate supply and demand for financial capital
- Explain how a nation's own level of domestic saving and investment determines a nation's balance of trade
- Predict the rising and falling of trade deficits based on a nation's saving and investment identity
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