Macroeconomics 13th Edition by William Baumol ,Alan Blinder

تمرين 4

Explain why X - IM = ( S - I ) - ( G - T ). Now multiply both sides of this equation by -1 to get
IM - X = ( I - S ) + ( G - T )
and remember that the trade deficit, IM - X , is the amount we have to borrow from foreigners to get Borrowing from foreigners = ( I - S ) + ( G - T )
Explain the common sense behind this version of the fundamental equation.