Question

In: Finance

The national income is $19.74 trillion, consumption is 69% of national income, private investment is 16%...

The national income is $19.74 trillion, consumption is 69% of national income, private
investment is 16% of national income, and government spending is 18% of national
income. What is the current account balance?
a. $0.592 trillion
b. -$0.592 trillion
c. $0
d. Cannot be determined with the information given

(SHOW ALL WORK)

Solutions

Expert Solution

Calculation of current account balance:

National income =                                             19.7400

Less: 69% consumption (69% of 19.74) =      13.6206

Private investment (16% of 19.74)         =         3.1584

Government spending (18% of 19.74)    =         3.5532

Current account balance                            =       -0.5922             

Hence option b is the correct answer. = -$ 0.592 trillion.


Related Solutions

Suppose that U.S. consumption spending is ​$13.5 ​trillion, gross private domestic investment is ​$2.3 ​trillion, government...
Suppose that U.S. consumption spending is ​$13.5 ​trillion, gross private domestic investment is ​$2.3 ​trillion, government spending is ​$3.3 ​trillion, and net exports are −$0.3 trillion. If interest income is ​$1.2 ​trillion, depreciation is ​$0.6 ​trillion, wages are ​$12.6 trillion, and rental income is ​$0.7 ​trillion, what is the net​ investment? The net investment is? ​(Enter your response rounded to one decimal​ place.)
In a closed economy Y = $18 trillion, national saving = $5.5 trillion, consumption is equal...
In a closed economy Y = $18 trillion, national saving = $5.5 trillion, consumption is equal to government expenditure. What is the government expenditure? Skyline Chili wants to finance the purchase of new equipment for its restaurants. The firm has limited internal funds, list two options that are available for Skyline to seek the funding. What do you mean by Kuwait government has a budget deficit for the year 2020? Using a graph explain the impact of Kuwait government introducing...
Disposable National income 2000 = $4.5 billion                    Consumption = $4.0 billion Disposable National income 2007 =...
Disposable National income 2000 = $4.5 billion                    Consumption = $4.0 billion Disposable National income 2007 = $5.5 billion                    Consumption = 4.8 billion Given the data above, what is this country’s marginal propensity to consume (MPC)? What is the country’s marginal propensity to save (MPS)? Fred works as an accountant and earns a paycheck of $1000 every week, but $300 are taken out in taxes. Fred’s consumption spending is normally $500. What is Fred’s personal disposable income? Now assume the Federal...
Suppose GDP equals $17 trillion, consumption equals $12.2 trillion, the government spends $3.5 trillion and has...
Suppose GDP equals $17 trillion, consumption equals $12.2 trillion, the government spends $3.5 trillion and has a budget deficit of $1.1 trillion. Calculate public saving, taxes, private saving, national saving, and investment. Now, assume that the government pursues its goal of updating the physical infrastructure of the economy (e.g. fixing roads, bridges, etc.). They decide to spend an additional $4 trillion on this endeavor (beyond their current spending). Use this new information to recalculate the totals from above for public...
National Income and Product Accounts Balance of Payments Accounts Consumption 1100 Capital account 50 Investment 800...
National Income and Product Accounts Balance of Payments Accounts Consumption 1100 Capital account 50 Investment 800 Domestic income payments to foreign factors 400 Government spending 200 Net unilateral transfers -8 Net taxes collected 150 Trade balance -80 Gross national income 1800 The above table represents data for TTYL during 2015. The values are in millions of dollars. Answer the following questions accordingly. What is the value of gross national expenditure? What is the value of gross domestic product? What is...
In 2012, the U.S. national debt was $16.7 trillion. If the national debt grows by an...
In 2012, the U.S. national debt was $16.7 trillion. If the national debt grows by an average of 2.6% per year; how long will it take the national debt to double? Group of answer choices 3.5 years 10 years 23.3 years 26.9 years
Suppose GDP is €5 trillion, taxes are €1.5 million, private saving is €0.5 trillion and public...
Suppose GDP is €5 trillion, taxes are €1.5 million, private saving is €0.5 trillion and public saving is €0.2 trillion. Assuming the economy is closed, calculate consumption, government purchases, national saving and investment.
If a rise in national income of £100m causes consumption of domestic goods and services to...
If a rise in national income of £100m causes consumption of domestic goods and services to rise by £60m, the multiplier is: a- 6 b- 4 c- 2.5 d- 2 If real national income (i.e. measured in base-year prices) were £60bn, if prices had doubled since the base year, and if the velocity of circulation were 10, then the level of money supply would be: a- £120bn b- £60bn c- £12bn d- £6bn Assuming that the price level is 3.00...
In a closed economy (in equilibrium), assume that real GDP is $15 trillion, government purchases are $1.3 trillion, public saving is $0.5 trillion, and national saving is $2.2 trillion.
ECO 252 - MacroeconomicsIn a closed economy (in equilibrium), assume that real GDP is $15 trillion, government purchases are $1.3 trillion, public saving is $0.5 trillion, and national saving is $2.2 trillion. Calculate the following: a. Taxesb. Consumptionc. Investmentd. Private savinge. The government budget deficit or surplus.Precise which one.
$21 trillion is a lot of money, and it is the approximate level of the national...
$21 trillion is a lot of money, and it is the approximate level of the national debt in 2018. In this essay, you are to attempt to cut outlays in the annual budget of the federal government so that a fiscal surplus could be applied to the debt. You are to examine the four largest areas of government outlays and suggest some ways that cuts could be made in each one. Your essay should be approximately 1-2 pages.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT