Macroeconomics 9th Edition by David Colander

Exercise 31

In 2012, the U.S.ederal budget deficit (how much greater government spending was than taxes) was about 7 percent of GDP.hat year the trade deficit (how much imports surpassed exports) was about 3 percent of GDP.lso in 2012, investment in the U.S.conomy exceeded U.S.rivate savings by about 3 percent of GDP.
a.What is the relationship among these three balances
b.What do they tell us about who financed the U.S.udget deficit in 2012
c.And what do they suggest about the extent of crowding out of private investment in the U.S.conomy in 2012 (Institutionalist)