1. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 5 National Saving, the Government Budget, Foreign Borrowing, and the Twin Deficits

2. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-2 Figure 5-1 Real Government Expenditures, Real Government Revenues, and the Real Government Budget Deficit, 1900–2005 (1 of 2)

3. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-3 Figure 5-1 Real Government Expenditures, Real Government Revenues, and the Real Government Budget Deficit, 1900–2005 (2 of 2)

4. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-4 Figure 5-1 Real Government Expenditures, Real Government Revenues, and the Real Government Budget Deficit, 1900–2005

5. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-5 Figure 5-2 The Relation Between the Government Budget Surplus or Deficit and Real Income

6. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-6 Figure 5-3 Effect on the Budget Line of an Increase in Government Expenditures

7. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-7 Figure 5-4 A Comparison of the Actual Budget and the Natural Employment Budget, 1960–2004

8. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-8 Figure 5-5 National Saving and Domestic Investment in a Closed Economy

9. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-9 Figure 5-6 Effect of a Fiscal Expansion in a Closed Economy

10. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-10 Figure 5-7 Effect of a Fiscal Expansion in an Open Economy (1 of 2)

11. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-11 Figure 5-7 Effect of a Fiscal Expansion in an Open Economy (2 of 2)

12. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-12 Figure 5-7 Effect of a Fiscal Expansion in an Open Economy

13. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-13 Figure 5-8 Components of Net Saving and Investment, 1960–2004

14. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-14 International Perspective Saving, Investment, and Government Budgets Around the World

15. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-15 International Perspective Saving, Investment, and Government Budgets Around the World (1 of 3)

16. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-16 International Perspective Saving, Investment, and Government Budgets Around the World (2 of 3)

17. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-17 International Perspective Saving, Investment, and Government Budgets Around the World (3 of 3)

18. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5-18 International Perspective Saving, Investment, and Government Budgets Around the World