November 23 2020 Modern Money Theory: Week 3 Back

Sector Balances Equation (Redux)

        (S - I) + (T - G) + (M - X) ≡ 0
            Domestic Private Sector Balance     (S - I)
        +         Government Sector Balance     (T - G)
        +            Foreign Sector Balance     (M - X)
        ___________________________________
        ≡                                 0


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