In an open economy that includes a government sector, the economy is at equilibrium. Households in this economy save $100 million, and firms devote $150 million to investment. Which combination of the budget balance and the current account balance would produce an equilibrium position in the circular flow of income?
- Acurrent account balance: $50m deficit; budget balance: $100m deficit
- Bcurrent account balance: $50m surplus; budget balance: $100m deficit
- Ccurrent account balance: $50m deficit; budget balance: $100m surplus
- Dcurrent account balance: $50m surplus; budget balance: $100m surplus