During the Reagan era, 1981-1988, the U.S. current account moved from a tiny surplus to a large deficit. The following table provides U.S. macroeconomic data for that period.
a. Based on these data, to what extent would you attribute the changes in the U.S. current-account balance to a decline in the U.S. private saving-investment balance?
b. To what extent would you attribute the changes in the U.S. current-account balance to an increase in the U.S. government budget deficit?
c. Based on these data, what was the excess of national spending over national income during this period?