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Suppose that consumption is 200, Government spending is 100, Investment is 100. Moreover, suppose that exports...

Suppose that consumption is 200, Government spending is 100, Investment is 100. Moreover, suppose that exports are equal to 50 while imports are 150.

(a) What is the value of the current account? Does this country have a current account deÖcit or surplus?

(b) What is the GNP of this economy?

(c) What is the value of national saving? (d) Suppose that taxes are equal to 50. Calculate the private saving and the government budget deÖcit

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Expert Solution

Rahul Sunny answered 2 years ago
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