Lecture 2 28

Lecture 2 28 - C S T = C I G NX ⇒ S – I =(G-T NX ⇒...

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Application: Twin Deficits Disposable Income is either consumed or saved: Y – T = C + S Substitute in the equilibrium equation (1) implies:
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Unformatted text preview: C + S + T = C + I + G + NX ⇒ S – I = (G-T) + NX ⇒ Savings – Investment = Budget Deficit + Net Exports...
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This note was uploaded on 04/03/2011 for the course ECON 2021 taught by Professor Mok during the Spring '11 term at HKU.

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