The trade balance must equal the level of private and public saving in the country.

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The trade balance, also known as the balance of payments, represents the difference between a country's exports and imports. It includes both the trade in goods and services. The trade balance is affected by various factors such as exchange rates, tariffs, and domestic and foreign demand for goods and services.

However, in the long run, the trade balance must equal the level of private and public saving in the country. If a country saves more than it invests, it will have a surplus in its trade balance. On the other hand, if a country invests more than it saves, it will have a deficit in its trade balance. Therefore, to balance the trade, a country must adjust its saving and investment patterns.

The Trade Balance Must Equal the Level of Private and Public