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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