Texas Gateway: Chapter 9: The National Saving and Investment Identity

By the end of this section, you will be able to do the following: Explain the determinants of trade and current account balance, Identify and calculate supply and demand for financial capital, Explain how a nation's balance of trade is determined by that nation's own level of domestic saving and investment, and Predict the rising and falling of trade deficits based on a nation's saving and investment identity.