If a bond's coupon adjusts to pay a constant real rate of return, then an increase in inflation would cause

Which of the following statements is true?

A. Current account balance = -(capital account balance). B. A country's balance on current account equals its balance on capital account. C. If the market for a nation's currency is in equilibrium, a capital account surplus necessarily means a current account surplus. D. Capital accounts and current accounts balances are determined by governments.

Refer to Scenario 10-1. Based on the information above, what is the level of private saving in the economy?

A) $3 trillion B) $4 trillion C) $5 trillion D) $8 trillion