An economy has a budget surplus of $900, private savings of $2,000, and investment of $1,300. 1. Write out the national savings and investment identity. 2. What will be the balance of trade in this economy? Show your work! 3. Suppose that the budget surplus change to a budget deficit of $900, with private saving and investment unchanged. What is the new balance trade in this economy? Does the economy run now a trade deficit or a trade surplus? Show your work!

Definition Definition Structural system an enterprise uses to collect, store, report, retrieve, and process financial data. Accounting information systems are used by business analysts, auditors, accountants, and consultants for accurate and efficient access to financial data.