46. Imagine that the economy of Germany finds itself in the following situation: the government budget has

Question:

46. Imagine that the economy of Germany finds itself in the following situation: the government budget has a surplus of 1% of Germany’s GDP; private savings is 20% of GDP; and physical investment is 18% of GDP.

a. Based on the national saving and investment identity, what is the current account balance?

b. If the government budget surplus falls to zero, how will this affect the current account balance?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Macroeconomics For AP Courses

ISBN: 9781593998813

2nd Edition

Authors: OpenStax

See More Books

Question Posted: Nov 13, 2024 01:00 AM

See More Questions

Given the following points: 2,4,10,12,3,20,30,11,25. Assume k = 3, and that we randomly pick the initial means 1=2, 2=4 and 3=6. Show the clusters obtained using K-means algorithm after one...
A business case has at least four components, including market components, product components, industry components, and company components. Describe a hypothetical new product. Show how primary and...
Use mesh analysis to find Vo in the circuit shown 12V 2mA Io
46. Imagine that the economy of Germany finds itself in the following situation: the government budget has a surplus of 1% of Germanys GDP; private savings is 20% of GDP; and physical investment is...
Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Best Digital, Corp., and Every Zone, Inc., and have...
Electronic Fund Transfers Before starting this activity, review LO 2 9 - 5 . Recall that the most common types of electronic fund systems are automated teller machines, point - of - sale systems,...
45. Table 9.7 provides some hypothetical data on macroeconomic accounts for three countries represented by A, B, and C and measured in billions of currency units. In Table 9.7, private household...
59. Review the problem in the Work It Out titled "Interpreting the AD/AS Model." Like the information provided in that feature, Table 10.2 shows information on aggregate supply, aggregate demand, and...
On December 31, employees have earned $5,000 but payday is not until January 9. Record the adjusting entry at December 31.
During the month of July, the Town of Lynton recorded the following information related to purchases: General government Public safety Public works Amount of Purchase Order $ 570,000 755,200 974,845...
Exercise 4-8 (Algo) Discontinued operations; disposal in subsequent year [LO4-4] Kandon Enterprises, Incorporated, has two operating divisions; one manufactures machinery and the other breeds and...
The Certified Dietary Manager sees a cook coming out of the walk-in cooler carrying a 24-head crate of lettuce. What should the Certified Dietary Manager do first? Group of answer choices Quickly get...
Based on Exhibit 7-8, what would be the monthly mortgage payments for each of the following situations? (Round mortgage payment factors and final answers to 2 decimal places. Omit the "$" sign in...
Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $ 21,550 Lee Drake 33,925 Jenny Green 27,565 Mike Lamb...
The bolt shank is subjected to a tension F. Determine the internal normal force, shear force, and moment at point C. Given: F = 80 lb a = 6 in B
The following processes constitute the air-standard Diesel cycle: 12: isentropic compression,23: constant-volume energy addition (T and P increase),34: constant-pressure energy addition (v...

46. Imagine that the economy of Germany finds itself in the following situation: the government budget has

Question:

Step by Step Answer:

Principles Of Macroeconomics For AP Courses

Students also viewed these Business questions