Good morning.Please help me with this question from my textbook.Refer to figure 1 which shows the income flows(Rm) in the economic circular flow model for a small economy. Q.2.1.1 Identify the value of savings in this economy.Q.2.1.2 What is the value of tax revenue in this economy?Q.2.1.3 What is the value of investment spending in this economy?Q.2.1.4 Identify two injection flows that are illustrated in this flow diagram.Q.2.1.5 From the information in Figure 1, identify whether this economy isexperiencing a budget deficit or a budget surplus. Support your answerwith information from the model. Figure 1FIRMS400m120m80m 100moomR90mGOVERNMENTFINANCIALFOREIGNSECTORSECTOR50msom220m100mHOUSEHOLDS

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Answered: Q.2.1.1 Identify the value of savings…

Q.2.1.1 Identify the value of savings in this economy. Q.2.1.2 What is the value of tax revenue in this economy? Q.2.1.3 What is the value of investment spending in this economy?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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