$$\begin{array} { | l | c | }
\hline { \text { Item } } & \begin{array} { c }
\text { Billions of } \
\text { dollars }
\end{array} \
\hline \text { Exports of goods and services, } X & \
\hline \text { Imports of goods and services, } M & 1,000 \
\hline \text { Net taxes, } T & \
\hline \text { Government expenditure, } G & 1,300 \
\hline \text { Saving, } S & \
\hline \text { Investment, } I & 650 \
\hline
\end{array}$$
-Using the data in the above table,if net exports = -$500 billion and the government balances its budget,

Question

$$\begin{array} { | l | c | } 
\hline { \text { Item } } & \begin{array} { c } 
\text { Billions of } \
\text { dollars }
\end{array} \
\hline \text { Exports of goods and services, } X & \
\hline \text { Imports of goods and services, } M & 1,000 \
\hline \text { Net taxes, } T & \
\hline \text { Government expenditure, } G & 1,300 \
\hline \text { Saving, } S & \
\hline \text { Investment, } I & 650 \
\hline
\end{array}$$
-Using the data in the above table,if net exports = -$500 billion and the government balances its budget,

Quizplus · Accepted Answer

Net exports (X - M) = -$500 billion implies X = $500 billion. The government balances its budget, so T = G = $1,300 billion. Using the equation S - I = (X - M) + (T - G), we find S - 650 = -500 + 0, so S = $150 billion.

-Using the Data in the Above Table,if Net Exports =