11. Suppose there are three adjacent countries maintaining their closed economic borders, i.e. Hastina, Mandura, and Ayodya. The government of Hastina sets a lump sum tax of USD 40 trillion and transfers of USD 20 trillion, while also spends USD 30 trillion out of its budget on goods and services. In Mandura, USD 60 trillion of private savings have been accumulated, while investment expenditures reach USD 40 trillion. At the same time, the GDP of Ayodya is USD 300 trillion, while aggregate consumption is USD 180 trillion and investment is USD 90 trillion. It is further known that USD 60 trillion of taxes are collected and transfers of USD 20 trillion has been made. Based on this information, we can conclude that... a. government budget deficit is the largest in Hastina b. government budget deficit is the largest in Mandura c. government budget deficit is the largest in Ayodya d. all three countries have equal government budget deficit

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Economics
11. Suppose there are three adjacent countries maintaining their closed economic borders, i.e. Hastina,
Mandura, and Ayodya. The government of Hastina sets a lump sum tax of USD 40 trillion and
transfers of USD 20 trillion, while also spends USD 30 trillion out of its budget on goods and services.
In Mandura, USD 60 trillion of private savings have been accumulated, while investment
expenditures reach USD 40 trillion. At the same time, the GDP of Ayodya is USD 300 trillion, while
aggregate consumption is USD 180 trillion and investment is USD 90 trillion. It is further known that
USD 60 trillion of taxes are collected and transfers of USD 20 trillion has been made. Based on this
information, we can conclude that....
a. government budget deficit is the largest in Hastina
b. government budget deficit is the largest in Mandura
c. government budget deficit is the largest in Ayodya
d. all three countries have equal government budget deficit
Transcribed Image Text:Economics 11. Suppose there are three adjacent countries maintaining their closed economic borders, i.e. Hastina, Mandura, and Ayodya. The government of Hastina sets a lump sum tax of USD 40 trillion and transfers of USD 20 trillion, while also spends USD 30 trillion out of its budget on goods and services. In Mandura, USD 60 trillion of private savings have been accumulated, while investment expenditures reach USD 40 trillion. At the same time, the GDP of Ayodya is USD 300 trillion, while aggregate consumption is USD 180 trillion and investment is USD 90 trillion. It is further known that USD 60 trillion of taxes are collected and transfers of USD 20 trillion has been made. Based on this information, we can conclude that.... a. government budget deficit is the largest in Hastina b. government budget deficit is the largest in Mandura c. government budget deficit is the largest in Ayodya d. all three countries have equal government budget deficit
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