3. The accompanying table shows the percentage of GDP accounted for by private sav- ings, investment spending, and capital inflow in the economies of Capsland and Marsalia. Capsland is currently experiencing a net capital inflow and Marsalia, a net capital outflow. What is the budget balance (as a percentage of GDP) in both coun- tries? Are Capsland and Marsalia running a budget deficit or surplus?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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3. The accompanying table shows the percentage of GDP accounted for by private sav-
ings, investment spending, and capital inflow in the economies of Capsland and
Marsalia. Capsland is currently experiencing a net capital inflow and Marsalia, a net
capital outflow. What is the budget balance (as a percentage of GDP) in both coun-
tries? Are Capsland and Marsalia running a budget deficit or surplus?
Capsland
Investment spending as a
percentage of GDP
Private savings as a
percentage of GDP
Capital inflow as a
percentage of GDP
20%
10
40
5
Marsalia
20%
25
-2
Transcribed Image Text:3. The accompanying table shows the percentage of GDP accounted for by private sav- ings, investment spending, and capital inflow in the economies of Capsland and Marsalia. Capsland is currently experiencing a net capital inflow and Marsalia, a net capital outflow. What is the budget balance (as a percentage of GDP) in both coun- tries? Are Capsland and Marsalia running a budget deficit or surplus? Capsland Investment spending as a percentage of GDP Private savings as a percentage of GDP Capital inflow as a percentage of GDP 20% 10 40 5 Marsalia 20% 25 -2
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