Assume the information below to answer the following questions about the land of POGO.  Assume a 2% interest rate on all interest-bearing Pogo assets (assets issued by Pogo), and a 4% interest rate on Foreign assets (issued by Foreign). POGO CONSUMER EXPENDITURES, 2020: $217B                      POGO INVESTMENT EXPENDITURES, 2020: $125B POGO GOVERNMENT EXPENDITURES, 2020: $25B TAXES COLLECTED BY THE POGO GOVERNMENT: $18B MERCHANDISE EXPORTS, GOODS & SERVICES TO FOREIGN, 2020: $45B MERCHANDISE IMPORTS, GOODS & SERVICES FROM FOREIGN, 2020: $65B POGO LABOR INCOME FROM ABROAD, 2020: $5B INCOME PAID TO FOREIGNERS WORKING IN POGO, 2020: $8B FOREIGN ASSETS OWNED BY PRIVATE CITIZENS OF POGO, START of 2020: $100B POGO ASSETS OWNED BY PRIVATE CITIZENS IN FOREIGN AT THE START of 2020: $50B RESERVES OF FOREIGN NON-INTEREST BEARING ASSETS HELD BY THE CENTRAL BANK OF POGO AT THE START OF 2020: $300B RESERVES OF FOREIGN NON-INTEREST BEARING ASSETS HELD BY THE CENTRAL BANK OF POGO AT THE END OF 2020 (START OF 2021): $305B THE CENTRAL BANK IN FOREIGN NEVER HOLDS POGO ASSETS. 1. Based on the information provided above, Private International Net Worth of Pogo Citizens at the start of 2021 is _______________ billion dollars. 2.  Based on the information provided above, Pogo's overall International Net Worth at the start of 2021 is _____________  billion dollars. 3. The fraction of Purchases of New Plant and Equipment (I) in Pogo financed by Foreign Saving is __________  percent. 4. Pogo's GDP for 2020 is __________ billion dollars 5. Pogo's GNP for 2020 is __________ billion dollars.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Assume the information below to answer the following questions about the land of POGO.  Assume a 2% interest rate on all interest-bearing Pogo assets (assets issued by Pogo), and a 4% interest rate on Foreign assets (issued by Foreign).

  • POGO CONSUMER EXPENDITURES, 2020: $217B                     
  • POGO INVESTMENT EXPENDITURES, 2020: $125B
  • POGO GOVERNMENT EXPENDITURES, 2020: $25B
  • TAXES COLLECTED BY THE POGO GOVERNMENT: $18B
  • MERCHANDISE EXPORTS, GOODS & SERVICES TO FOREIGN, 2020: $45B
  • MERCHANDISE IMPORTS, GOODS & SERVICES FROM FOREIGN, 2020: $65B
  • POGO LABOR INCOME FROM ABROAD, 2020: $5B
  • INCOME PAID TO FOREIGNERS WORKING IN POGO, 2020: $8B
  • FOREIGN ASSETS OWNED BY PRIVATE CITIZENS OF POGO, START of 2020: $100B
  • POGO ASSETS OWNED BY PRIVATE CITIZENS IN FOREIGN AT THE START of 2020: $50B
  • RESERVES OF FOREIGN NON-INTEREST BEARING ASSETS HELD BY THE CENTRAL BANK OF POGO AT THE START OF 2020: $300B
  • RESERVES OF FOREIGN NON-INTEREST BEARING ASSETS HELD BY THE CENTRAL BANK OF POGO AT THE END OF 2020 (START OF 2021): $305B
  • THE CENTRAL BANK IN FOREIGN NEVER HOLDS POGO ASSETS.

1. Based on the information provided above, Private International Net Worth of Pogo Citizens at the start of 2021 is _______________ billion dollars.

2.  Based on the information provided above, Pogo's overall International Net Worth at the start of 2021 is _____________  billion dollars.

3. The fraction of Purchases of New Plant and Equipment (I) in Pogo financed by Foreign Saving is __________  percent.

4. Pogo's GDP for 2020 is __________ billion dollars

5. Pogo's GNP for 2020 is __________ billion dollars.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Present Worth
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education