Sector Balances after Period 3

• Answer: government's balance is 10; private sector's balance is -10

              Government                      Non-government

        \                    /            \                    /
         \                  /  Spend:  90  \                  /
          \     $  10      /   --------->   \     $ -10      /
           \              /    Tax:   100    \              /
            \            /     <---------     \            /
             \__________/                      \__________/

                $  10               +             $ -10           ≡   0

• The sector balances sum to 0