When the level of saving and taxes is larger than the sum of government spending and investment, then the country's trade balance will be negative.

Question

Quizplus · Accepted Answer

When the level of saving and taxes is larger than the sum of government spending and investment, it implies that the country is saving more than it is spending, which typically leads to a surplus in the trade balance, not a deficit.

When the Level of Saving and Taxes Is Larger Than