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  • Card 8 / 16:
    If a country is running a government budget surplus, why is (T – G) on the left side of the saving-investment identity?

    The government is saving rather than borrowing. The supply of savings, whether private or public, is on the left side of the identity.

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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