Final answer:
The current account balance represents the net inflow or outflow of funds from a country. It is calculated using the national saving and investment identity equation. If investment rises while the budget deficit and national savings remain the same, the current account balance will increase.
Step-by-step explanation:
The current account balance represents the difference between a country's total exports and its total imports, including international flows of money from global investments. It measures the net inflow or outflow of funds from the country. To calculate the current account balance, we need to use the national saving and investment identity equation: Current Account Balance = National Savings - Domestic Investment + Net Capital Inflow/Outflow. If investment remains the same and the budget deficit and national savings remain the same, the current account balance will be equal to the government budget deficit. If investment rises by $50 billion, while the budget deficit and national savings remain the same, the current account balance will increase by $50 billion.