KW_Macro_Ch_09_End_of_Chapter_Problems

KW_Macro_Ch_09_End_of_Chapter_Problems - chapter 9 Savings...

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>> Savings, Investment Spending, and the Financial System chapter 9 1. Given the following information about the closed economy of Brittania, what is the level of investment spending and private savings, and what is the budget balance? What is the rela- tionship among the three? Is national savings equal to investment spending? There are no government transfers. GDP = $1,000 million T = $50 million C = $850 million G = $100 million 2. Given the following information about the open economy of Regalia, what is the level of investment spending and private savings, and what are the budget balance and capital inflow? What is the relationship among the four? There are no government transfers. GDP = $1,000 million G = $100 million C = $850 million X = $100 million T = $50 million IM = $125 million PROBLEMS
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3. The accompanying table shows the percentage of GDP accounted for by private savings, investment spending, and capital inflow in the economies of Capsland and Marsalia. Capsland is currently experiencing a net capital inflow and Marsalia, a net capital outflow. What is the budget balance (as a percentage of GDP) in both countries? Are Capsland and Marsalia running a budget deficit or surplus? 4.
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KW_Macro_Ch_09_End_of_Chapter_Problems - chapter 9 Savings...

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