Page 45 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 45
Session Unit 4:
15. Aggregate Output, Prices & Economic Growth, p.52
LOS 16.e: Explain the fundamental relationship among saving, investment, the fiscal balance, and the trade
balance....p.56
But TE = TI
Government deficit (G – T > 0) must be financed by:
• Trade deficit (X – M < 0) and/or
• Excess of private saving over private investment (S – I > 0).
