3. The Balance of payments is always balanced.” Discuss 4. Suppose private saving is further separated into representing consumer savings and firm savings respectively. Show that total savings = + + given the following i. Private citizens earn a wage (W), pay taxes, consume and save the remainder of their income ii. Firms receive revenue from sales (Y), pay wages to workers (W), and pay taxes iii. Total government taxes is the sum of taxes paid by private citizens and firms iv. = − 5. Why would governments be concerned about current account deficits or current account surpluses? Discuss at least one hypothetical for both outcomes. For This or a Similar Paper Click Here To Order Now
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