# 07 : BALANCE OF PAYMENTS ACCOUNTING
Question: What is the current account balance of a nation with
a government deficit of $128 billion, private saving of $806
billion, and domestic capital formation of $777 billion?
G T = 128 billion or Sg = 128 bil
Quantity. 0 D" 8" Quantity. 0
Deriving Home's Import Demand Curve
As the price of the good increases, Home consumers demand less, \shile Horne producers
supply more, so that the demand for imports declines.