You are given the following information about an economy: Gross private domestic investment = 40 Government purchases of goods and services = 30 Gross national product (GNP) = 200 Current account balance = -20 Taxes = 60 Government transfer payments to the domestic private sector = 25 Interest payments from the government to the domesticprivate sector = 15 (Assume all interest payments by the government go to domestic households.) Factor income received from rest of world = 7 Factor payments made to rest of world = 9 Find the following, assuming that government investment is zero: a. Consumption, Net exports,GDP and Net factor payments from abroad b. Private saving, Government saving and National saving
You are given the following information about an economy:
Gross private domestic investment = 40
Government purchases of goods and services = 30
Gross national product (GNP) = 200
Current account balance = -20
Taxes = 60
Government transfer payments to the domestic private sector = 25
Interest payments from the government to the domesticprivate sector = 15 (Assume all interest payments by the government go to domestic households.)
Factor income received from rest of world = 7
Factor payments made to rest of world = 9
Find the following, assuming that government investment is zero:
a. Consumption, Net exports,GDP and Net factor payments from abroad
b. Private saving, Government saving and National saving
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