{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# aq27Mar1 - 1,700 4.How much foreign finance is being used...

This preview shows pages 1–2. Sign up to view the full content.

Name [ last, first] SS# Suppose you are given the following information on the US Economy, all in billions of dollars: C I G X M S T 8,50 0 2,10 0 2,30 0 2,40 0 1,90 0 2,100 [Y = C + I + G + (X – M) = C + S + T] 1.What are imports, M? I + G + X – (S + T) = M, so M is 2,100 + 2,300 + 2,400 – (1,900 + 2,100) = 6,800 – 4,000 = 2,800 2.What is government saving? Govt saving is (T – G) = 2,100 – 2,300 = -200 3.What is national saving? Nat saving is S + (T - G) = 1,900 + (-200) =

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1,700 4.How much foreign finance is being used to finance US investment? Investment minus national saving must be financed by foreigners; that is, 2,100 – 1,700 = 400 5.What is the trade balance? 2e7da1963f10c90ead5ea0d3b58ff35b8e158214.doc (X – M) = 2,400 – 2,800 = -400 Remember to put negative signs where needed. 2e7da1963f10c90ead5ea0d3b58ff35b8e158214.doc...
View Full Document

{[ snackBarMessage ]}