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Suppose the U

Question 64

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Suppose the U.S.has domestic savings of $50 billion, domestic investment of $120 billion, and a government budget deficit of $150 billion.Japan has domestic savings of 25 trillion yen, domestic investment of 10 trillion yen, and a government budget deficit of 8 trillion yen.Calculate the amounts of net foreign investment by the U.S.and by Japan.

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Use the equation S = I + NFI +...

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