Answers on Chapter 2 Homework

Answers on Chapter 2 Homework - b) Net Exports = (-20) (-2)...

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22:09 Chapter 2 Homework –  5) You are given the following information about an economy: Gross private domestic investment = 40 Government purchases of goods and services = 30 Gross nation product = 200 Current account balance = -20 Taxes = 60 Government transfer payments to the domestic private sector = 25 Interest payments form the government to the domestic private sector = 15 Factor income received from the rest of the world = 7 Factor payments made to the rest of the world = 9 Find the following: a) Consumption = 202 – (40 + 30 + (-18)) = 150 (C = Y – (I + G + NX))
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Unformatted text preview: b) Net Exports = (-20) (-2) = -18 (NX = CA NFP) c) GDP = 200 (-2) = 202 (GDP = GNP NFP) d) Net factor payments from abroad = 7 9 = -2 (Payments received factor payments made) e) Private saving = Spvt = (Y + NFP T + TR + INT) C = (202 + (-2) 60 + 25 + 15) 150) = 30 f) Government saving = Sgovt = (T TR INT) G = (60 25 15) 30 = -10 g) National saving = S = Spvt + Sgovt = 30 + (-10) = 20 22:09 22:09...
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Answers on Chapter 2 Homework - b) Net Exports = (-20) (-2)...

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