Consider the following open economy. Real GDP 1,000 Consumption 778 Government Expenditures 144 Investment 262 Exports |63 |Тахes 177 Transfers 85 If the economy invested 10 of its savings abroad, how much savings did it receive from abroad?

Consider the following open economy. Real GDP 1,000 Consumption 778 Government Expenditures 144 Investment 262 Exports |63 |Тахes 177 Transfers 85 If the economy invested 10 of its savings abroad, how much savings did it receive from abroad?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 2PA

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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

Consider the following open economy.
Real GDP
1,000
Consumption
778
Government Expenditures
144
Investment
262
Exports
|63
Таxes
|177
Transfers
85
If the economy invested 10 of its savings abroad, how much savings did it receive from abroad?
Do not write the dollar ($) sign, and use a minus (-) in front of a decrease. Round your answer at
one (1) decimal if necessary.

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