Business, 14.12.2019 00:31 jorozco3209

Two nations are located next to one another. in nation a, people are very thrifty and spend much less than their incomes; moreover, nation aâ€™s government runs a balanced budget every year. in nation b, people spend all of their income, but their government runs consistent deficits. thus: a nation a's extra savings would increase the supply of loanable funds to nation b. b nation b's government deficit would be a supply of loanable funds to nation b. c nation a's extra savings would increase the demand for loanable funds in nation b. d nation b would instantly default on all of its debt obligations. e nation a's extra savings would decrease the supply of loanable funds to nation b.

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Two nations are located next to one another. in nation a, people are very thrifty and spend much les...

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