Topic-the budget balance in Carpathia1) assume the budget balance, and Carpathia changes from a positive negative water effects with this have an investment spending in Carpathia?2) assume that while the budget bound of capacity is from positive negative info capacity also decreases what impact will have on private investment spending in Carpathia?(included the data for the economy of carpathia as well as the GDP ,the national savings , capital inflow , the savings investment spending identity for the carpathian economyI do not know if this involves a formula or this involves a word problem please help The Budget Balance in Carpathia)Answer the following questions:1. Assume the budget balance in Carpathia changes from positive to negative. What effectwill this have on investment spending in Carpathia?2.Assume that while the budget balance in Carpathia changes from positive to negative,net capital inflow in Carpathia also decreases. What impact will this have on privateinvestment spending in Carpathia? In the economy of Carpathia:$850 billionConsumptionGovernment purchase of goods and services$100 billionImports$125 billionInvestment spending$75 billionExports$100 billionTaxes$50 billionThere are no government transfers payment.Compute the following based on the data in the table above.GDP=1000 billionNational Savings=50 billionNet Capital Inflow= -25 billionThe Savings-investment spending identity for the Carpathian economy = 50 billionThe formula for GDP:GDP=C+I+G+X+MC=consumptionI-InvestmentG-GovernmentX=ExportsM=Imports

Having a budget balance means a difference between a government's earnings (which is in turn coming…

Answered: 1) assume the budget balance, and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Topic-the budget balance in Carpathia 1) assume the budget balance, and Carpathia changes from a positive negative water effects with this have an investment spending in Carpathia? 2) assume that while the budget bound of capacity is from positive negative info capacity also decreases what impact will have on private investment spending in Carpathia? (included the data for the economy of carpathia as well as the GDP ,the national savings , capital inflow , the savings investment spending identity for the carpathian economy I do not know if this involves a formula or this involves a word problem please help

In the economy of Carpathia:
$850 billion
Consumption
Government purchase of goods and services
$100 billion
Imports
$125 billion
Investment spending
$75 billion
Exports
$100 billion
Taxes
$50 billion
There are no government transfers payment.
Compute the following based on the data in the table above.
GDP=1000 billion
National Savings=50 billion
Net Capital Inflow= -25 billion
The Savings-investment spending identity for the Carpathian economy = 50 billion
The formula for GDP:
GDP=C+I+G+X+M
C=consumption
I-Investment
G-Government
X=Exports
M=Imports

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