A country recently had GDP of $1,200 billion. Its consumption expenditures were $700 billion, its government spent $200 billion, and it had domestic investment of $155 billion. What was the value of this country's net capital outflow?

A country recently had GDP of $1,200 billion. Its consumption expenditures were $700 billion, its government spent $200 billion, and it had domestic investment of $155 billion. What was the value of this country's net capital outflow?

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Savings,investment And The Financial System

Section: Chapter Questions

Problem 3CQQ

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

Question

(a)
A country recently had GDP of $1,200 billion. Its consumption expenditures
were $700 billion, its government spent $200 billion, and it had domestic
investment of $155 billion. What was the value of this country's net capital
outflow?

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