Suppose the government runs a budget surplus of $20 billion. With the aid of a diagram, analyse the effects of this policy B.

Suppose the government runs a budget surplus of $20 billion.A. With the aid of a diagram, analyse the effects of this policyB. Describe what happens to investment, private saving, public saving and national saving. Compare the size of the changes in the latter to the $20 billion of extra government savings.

Suppose the government runs a budget surplus of $20 billion.A. With the aid of a diagram, analyse the effects of this policy.Answer – If the government has been running budget surplus of $20…

 
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