Consider the identity s pminusi cad where s p is private
Consider the identity S p−I = CA+D where S p is private sector saving, I is investment, CA is the current account surplus, and D is the government deficit.
(a) Show the above identity holds.
(b) Explain what the above identity means.
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consider the identity s pminusi cad where s p is private sector saving i is investment ca is the current account
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