3. The accompanying table shows the percentage of GDP accounted for by private sav- ings, investment spending, and capital inflow in the economies of Capsland and Marsalia. Capsland is currently experiencing a net capital inflow and Marsalia, a net capital outflow. What is the budget balance (as a percentage of GDP) in both coun- tries? Are Capsland and Marsalia running a budget deficit or surplus? Capsland Investment spending as a percentage of GDP Private savings as a percentage of GDP Capital inflow as a percentage of GDP 20% 10 5 Marsalia 20% 25 -2

3. The accompanying table shows the percentage of GDP accounted for by private sav- ings, investment spending, and capital inflow in the economies of Capsland and Marsalia. Capsland is currently experiencing a net capital inflow and Marsalia, a net capital outflow. What is the budget balance (as a percentage of GDP) in both coun- tries? Are Capsland and Marsalia running a budget deficit or surplus? Capsland Investment spending as a percentage of GDP Private savings as a percentage of GDP Capital inflow as a percentage of GDP 20% 10 5 Marsalia 20% 25 -2

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 6PA

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