Question

assume that the following details apply to the u.s. economy: government budget deficit: $150 billion. domestic savings: $2,000 billion domestic physical capital investment: $2,500 billion according to the national saving and investment identity, what will be the current account balance? group of answer choices $2,150 billion $2,000 billion $650 billion $2,650 billion

Answer 1

Assume the government budget deficit is $150 billion. The current account balance is: $650 billion.

How to find the current account balance?

Using this formula to find the current account balance

Current account balance = Domestic physical capital investment -  Domestic savings + Government budget deficit

Let plug in the formula

Current account balance = ($2,500 billion - $2,000 billion) +$150 billion

Current account balance = $500 billion  + $150 billion

Current account balance =  $650 billion

Therefore the correct option  is C.

Learn more about Current account balance here:https://brainly.com/question/28240007

#SPJ1