In a two-period example of intertemporal trade,if NX 0 in period 1,then for trade to balance in period 2,

Name: In a two-period example of intertemporal trade,if NX > 0 in period 1,then for trade to balance in period 2,
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Question

In a two-period example of intertemporal trade,if NX > 0 in period 1,then for trade to balance in period 2,

Quizplus · Accepted Answer

In a two-period example of intertemporal trade, if NX > 0 in period 1, then for trade to balance in period 2, either C + I + G < Y or NX < 0 must hold.

In a Two-Period Example of Intertemporal Trade,if NX > 0