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Unformatted text preview: (X-M) = C + Sp +T and rearranging
yields Domestic saving and the current
account (Pg 348)
account (X - M) = (Sp - I) + (T- G) .. Eq 3
This is the net borrowing of the nation The time path of Eq 3 The US situation Thinking about the US trade balance in the
perspective of the US trade deficit
perspective What’s the role of the capital/financial
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This note was uploaded on 02/25/2014 for the course ECN 306 taught by Professor Croucher during the Spring '08 term at ASU.
- Spring '08