Question
You are given the following information about the open economy of Macroland for 2014: - GDP $100 billion - Consumption $70 billion - Tax revenues
You are given the following information about the open economy of Macroland for 2014: - GDP $100 billion - Consumption $70 billion - Tax revenues $15 billion - Transfer payments $8 billion - Government spending $20 billion - Exports $10 billion - Imports $12 billion a. What is the level of investment spending in Macroland in 2014? b. What is the level of capital inflow for Macroland in 2014? Is Macroland borrowing from foreigners or lending to foreigners? Explain your answer. c. What is private savings equal to in Macroland in 2014? d. What is the government budget balance equal to in Macroland in 2014? e. Does national savings + capital inflow equal investment spending for this economy in 2014? Explain your answer. f. Is the government of Macroland saving or borrowing funds in 2014? Explain your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started