Budget deficits

greenspun.com : LUSENET : Economic History (and Related Observations) : One Thread

If a country has a balanced government budget but a large growing account deficit and a very low level of savings what must they do to expand their level of investment and import more than it exports.

Now if this country runs into a recession what will happen in the short run to the level of national income, net exports, international borrowing, and unemployment.

-- Abena Charles (abenahasina@hotmail.com), December 10, 2004

Moderation questions? read the FAQ