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Ronch [10]
3 years ago
11

In 2019, Brazil's trade deficit as share of GDP widened. In that year, government deficit as share of GDP declined and investmen

t as share of GDP remained constant. What must have happened to private savings as share of GDP?
Business
1 answer:
ad-work [718]3 years ago
7 0

Answer:

The private savings as a share of the GDP must have declined.

Explanation:

according to the twin deficit hypothesis:

budget deficit = savings + trade deficit - investments

the government deficit as a share of GDP declined and investment as a share of GDP remained constant that means that the savings should decline.

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