Consider three different closed economies with the following national income statistics. Country A has taxes of $80 billion, transfers of $40 billion, and government expenditures on goods and services of $60 billion. County B has private savings of $175 billion, and investment expenditures of $122 billion. Country C has GDP of $300 billion, investment of $111 billion, consumption of $180 billion, taxes of $60 billion and transfers of $30 billion. Which country has the highest budget deficit?

Consider three different closed economies with the following national income statistics. Country A has taxes of $80 billion, transfers of $40 billion, and government expenditures on goods and services of $60 billion. County B has private savings of $175 billion, and investment expenditures of $122 billion. Country C has GDP of $300 billion, investment of $111 billion, consumption of $180 billion, taxes of $60 billion and transfers of $30 billion. Which country has the highest budget deficit?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 12E

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