Suppose that in the same year Country A's GNP is $1,200, gross domestic private investment is $200, personal consumption is $800, net taxes are $160. Assume that net unilateral transfers are zero. Then: a) What is its national savings? b) What is its government savings? c) What is its domestic absorption? d) Does Country A need to borrow from the rest of the world? Explain.

Suppose that in the same year Country A's GNP is $1,200, gross domestic private investment is $200, personal consumption is $800, net taxes are $160. Assume that net unilateral transfers are zero. Then: a) What is its national savings? b) What is its government savings? c) What is its domestic absorption? d) Does Country A need to borrow from the rest of the world? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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