Assume that gross private domestic investment is $800B and the government (state, local, and federal combined) is currently running over a $400B deficit. If households and businesses are saving $1,000B, what is the value of net exports? Use equation to explain your answer.
Equation 2.6 (pg.35): T - G = (I + NX) - S
T =
G = gov't purchases of goods & services
I = private domestic investment
NX = net exports
S = private savings