If X - M = $0 and the government sector has a deficit of $250 billion, then the private sector

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When X - M equals $0, it means that exports (X) and imports (M) are equal, so the trade balance is neutral. If the government sector has a deficit of $250 billion, it means it is spending more than it is earning. For the overall economy to be in balance (assuming no changes in foreign sector balance), the private sector must have an equivalent surplus of $250 billion to offset the government's deficit.

If X - M = $0 and the Government Sector