Problems:
We know that National Savings is what's left of National Income after Households Consume and the Government Spends (S = Y - C - G). And, we know that National Income equals GDP (Y = C + I + G + NX). Therefore, it is easy to show that a country's trade deficit or surplus (NX) is directly tied to the country's foreign investment surplus or deficit (Net Foreign Investment, NFI).
i. Graphically show the relationship and ii. Briefly Explain?
Additional Information:
The problem is related to economics and it is explains what's left of National Income after Households Consume and the Government Spends (S = Y - C - G). And, we know that National Income equals GDP (Y = C + I + G + NX).