Question
Suppose that in the same year Country As GNP is $1,200, gross domestic private investment is $200, personal consumption is $800, net taxes are $160.
Suppose that in the same year Country As GNP is $1,200, gross domestic private investment is $200, personal consumption is $800, net taxes are $160. Assume that net unilateral transfers are zero. Then:
a) What is its national savings?
b) What is its government savings?
c) What is its domestic absorption?
d) Does Country A need to borrow from the rest of the world? Explain.
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Risk Management And Financial Institutions
Authors: John C. Hull
3rd Edition
1118269039, 9781118269039
