S+T+M=B+F+G+X >(B-S)+(F+G-T)+(M)=0 S saving by households and firms T-total tax payment by household and firms M-total imports of factors and products B-total borrowing by household, firms and governments F-total transfer payments by government(social security and welfare) G-total purchase by government X- total exports of factors and products➢ S+T+M=B+F+G+X ➢ (B-S)+(F+G-T)+(X-M)=0 ⚫ S- saving by households and firms ⚫ T- total tax payment by household and firms ⚫ M- total imports of factors and products ⚫ B- total borrowing by household, firms and governments ⚫ F- total transfer payments by government (social security and welfare) ⚫ G- total purchase by government ⚫ X- total exports of factors and products