Relationship Between Saving, Investment, Fiscal Balance, and Trade Balance

Premium

To understand the relation between savings, investments, fiscal balance, and trade balance, we will combine the income and expenditure approach to calculating GDP.

We know that,

GDP = C + I + G + (X – M)

We also know that,

GDP = C + S + T

Where,

C = Consumption spending

Unlock Premium Content

Upgrade your account to access the full article, downloads, and exercises.

You'll get access to:

  • Access complete tutorials and examples
  • Download source code and resources
  • Follow along with practical exercises
  • Get in-depth explanations