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How Is the Current Account Related to National Saving? CA=Y-(C+I+G) =(Y-C-G)-I 三 S-I current account national saving -investment current account net foreign investment A country that imports more than it exports has low national saving relative to investment. 13-14 Copyright2012 Pearson Education.All rights reserved.Copyright © 2012 Pearson Education. All rights reserved. 13-14 How Is the Current Account Related to National Saving? CA = Y – (C + I + G ) = (Y – C – G ) – I = S – I current account = national saving – investment current account = net foreign investment • A country that imports more than it exports has low national saving relative to investment
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