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Gamma Omega Sigma Gross domestic product, GDP 20000 25000 Consumption, C 8125 14375 Investment, I Government spending, G 5000 Taxes, T 7000 Exports (of goods
Gamma Omega Sigma Gross domestic product, GDP 20000 25000 Consumption, C 8125 14375 Investment, I Government spending, G 5000 Taxes, T 7000 Exports (of goods and services), EX Imports (of goods and services), IM Private saving, SP 2500 Public saving, SG National saving, S 5625 Net unilateral transfer 0 0 0 Current account, CA Sales of country's financial assets to foreign 1550 residents Purchases of foreign financial assets by 2025 domestic residents Official reserve transactions, ORT 525 Financial account, KA - - 1450 Capital account 375 0 Additional information about these countries: The central banks only make transactions with other countries' central banks. Country-specific information: Gamma: Households consume 65% of final products. The government consumes 35% of the economy's output and it is running a budget deficit of 625. The levels of exports (of goods and services) and imports are 2625 and 6000 respectively. Omega: The country allocates 4.75% of output to build up physical captial. The government runs a balanced budget. The spending on Sigma's final products is 3890, and Omega runs a balanced trade with Sigma. Gamma' residents purchase 3335 worth of Omega's products, and Omega runs a trade surplus of 1550 with Gamma. Sigma: Both Omega and Sigma have the same (total) level of imports of goods and services. The tax revenues collected by the government are 25% more than its government spending on final products The central bank finds its stock of official reserves falls by 375. The total amount of financial assets exports by the country's private sector reaches 1925. a) Complete the above table. You are not required to provide explanation to your answer for this question; however, you should understand the logic behind the entry of each cell so that you can work on similar questions in the future. (15 points) Note: The table is reproduced on page 4 of this assignment. You MUST submit that page with your assignment for grading; otherwise, you will be receiving a grade of zero for this question. b) Which country/countries (include both the central bank and the private sector) would find themselves accumulate foreign wealth? Explain. (5 points)
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