Problem 1 - international finance

2. Use the following information on a hypothetical economy, the Virginia Empire, for the year 2020. BOP Accounts National Income and Product Accounts (NIPA) Current account surplus of $2 billion GNP is $16 billion Capital account surplus of $160 million Consumption is $ 10 billion Foreign factors located in the Empire earn $300 million Government purchases total $1.1 billion Trade surplus of $1.4 billion A $500 million government budget Net of -$100 million in unilateral transfers deficit a. Calculate the Empire's financial account balance. What has happened to the Empire's foreign asset position? b. Is the Empire a net borrower or net lender? Explain how you know. C. Calculate NFP (Net factor payments) for the Empire. d. What is the total amount of Taxes collected by the Empire? e. What is the total value of Imports of goods and services by the Empire? f. What is the value of Domestic Absorption? g. Find National Savings. Find Private savings