Pretend for moment you are teaching this class and you need to write questions for an exam covering this chapter. Write three short answer questions and give 2 answers for each — an adequate response and a very good response. You questions should cover highlights from the chapter. Don’t choose identification or list questions, require some analysis. A answers are generally longish.
1.How are national saving, domestic investment, and net exports related to each other?
They are related because they help find each other when it cokes to looking at trade balance, they all help be able to ensure that the economy and everything that come along with he difference in economies.
S = I + NX. This equation helps find out the savings using the investment and the net exports, they help to determine the trade balance and see the differences between economies and help them keep running by being able to see how much they need and how much it would make for the national savings.
2.What are the major determinants of the trade balance?
The major determinants for trade balance are the national savings and investments they help to decide
With trade balance you need national savings and investment to be able to see if there was a surplus or a deflect . One thing from the national saving and investment identity is that a nation’s balance of trade which is determined by that nation’s own levels of domestic saving and domestic investment. when the investment is higher than the domestic savings it would be considered a surplus.
Macroeconomics 