T = 120 + 0.25Y G = 640 IM = 100 + 0.1Y X = 540 a. The trade balance (X – IM) when the government’s budget is balanced is $ b. The government’s budget balance (T – G) when the trade balance is zero is $
T = 120 + 0.25Y G = 640 IM = 100 + 0.1Y X = 540 a. The trade balance (X – IM) when the government’s budget is balanced is $ b. The government’s budget balance (T – G) when the trade balance is zero is $
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter16: Government Spends, Collects, And Owes
Section: Chapter Questions
Problem 3AA
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Question
T = 120 + 0.25Y
G = 640
IM = 100 + 0.1Y
X = 540
a. The trade balance (X – IM) when the government’s budget is balanced is $
b. The government’s budget balance (T – G) when the trade balance is zero is $
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