Psychology homework help. Suppose that in a small island economy household savings are S = 15% of GDP, private investment is I = 10% of GDP, public sector spending is G = 21% of GDP, transfers are Z = 1% of GDP, interest payments on public debt are INT = 1% of GDP and private consumption is C = 70% of GDP. What is the vaule of its current account balance? (a) current account surplus of 1% or GDP. (b) current account surplus of 0% or GDP. (c) current account deficit of 1% or GDP.

Psychology homework help