Depredation Receipts of factor income from the rest of the world Govemment purchases Imports Payments of factor income to the rest of the world Net private domestic investment Personal income taxes 20 40 150 50 40 160 80 Personal consumption expenditures 700 Dividends 10 Exports Amount of national income not going to households 70 30 Refer to Table 6.8. The value for GNP in billions of dollars is
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- If national income Y = 10,500, disposable income Yd = 8,500 , consumption is C = 8,000, transfer payments TR = 150 and the budget deficit is BD = 200, what is the level of private domestic investment, I ? (please insert the round number without the Euro symbol)Assume that the following are the data acquired: Consumption ……………… 200M Imports …………………50M Investment ………………. 55M Deflator ………………..1.20 Government Spending....…..120M Population …………….100M Exports ………………………. 80M Compute for the Nominal GDP.Consider country G, which is a closed economy. Suppose that G’s investment is 200, disposable income is 900 and the consumption 650. Answer G’s public saving and if government spending G is more than, less than or equal to the tax T. what is the public saving?:G (more than, less than or equal to the tax T)?:
- Q1-2 Consider the following hypothetical information on the national income account for Canada. Category Billions of $ Consumption spending 400 Investment spending 50 Government spending on goods & services 80 Exports 230 Imports 80 Factor income receipts from abroad 20 Factor income payments abroad 10 Net unilateral transfers 5 What is Canada's current account? a. $165 b. $150 c. $15 d. $695Foreign Exchange Market You buy USD 10 million against Canadian dollars at 1.3785 and sell USD 10 million at 1.3779. What is your profit or loss?Ch. 31. International Capital Budgeting Using the Foreign Currency Approach. ABC Company is considering a capital project with the cash flows as stated below in Euros. The project is in Euros and must be converted back to USD. The exchange rate is 0.83 Euros. The difference in the nominal rates between the two currencies is 2 percent. The appropriate discount rate for the project is estimated to be 10%, the US cost of capital for the company. What is the NPV of the project in US Dollars? NPV Year Cash Flows in Euro Year 0 € -2,900,000 Year 1 €1,300,000 Year 2 €1,300,000 Year 3 €1,300,000 Round to the nearest cent and format as "XXX,XXX.XX"
- 2. Imports and ExportsNow we allow for international trade. Use the following information from problem 1: C = 400 + (8/9)*DI I = 300G = 800T = (1/2)*Y. Suppose that exports are constant at X = 300.Let imports be a fraction of real income: M = (1/9) * Y. a. Give intuition for why imports M are positively related to national income Y in the equation above.b. Suppose that national income increases by $1. How much will spending on imports increase (the marginal propensity to import) in this case? c. Compute the equilibrium level of national income under international trade. d. Suppose that government spending increases by $120. i) Compute the new equilibrium national income. ii) Based on your numerical answer to (i), calculate the change in national income from a one dollar increase in government spending. iii) Derive the new fiscal multiplier from an increase in government spending using an algebraic equation. Compare to Problem 2.d.(ii). Compare to Problem 1.c.(v).e. Trade…Use the following terms for this question: C = Consumption. I = Capital investment spending. G = Government spending. X = Exports of goods and services. M = Imports of goods and services. BOP = Balance of Payments. GDP = Gross Domestic Product. NPV = Net Present Value. INF = Inflation. R = Real rate of return. The static equation for a country’s GDP is: A. GDP = C + I + G + X – M - (R – INF). B. GDP = C + I + G + X + M. C. GDP = C + I + G + X – M. D. GDP = C + I + X - M + R – INF.Q9) Monetary policy is ✅a)the management of the money supply and interest rates. b) involves decisions about government spending and taxation. c)the excess of expenditures over revenues for a particular year d) is the excess of revenues over expenditures for a particular year
- Q3-3 Under a flexible-rate system, when the BP curve is flatter than the LM curve (i.e., there is relative capital mobility), an autonomous increase in foreign interest rates will have what impacts on the domestic interest rate and domestic national income? Select one: a. domestic interest rate will increase, domestic national income will decrease b. domestic interest rate will increase, domestic national income will not change c. domestic interest rate will increase, domestic national income will increase d. domestic interest rate will not change, domestic national income will decreaseAn investment in China yields these expected after-tax renminbi cash flows (in billions). year CF 0 -495 1 146 2 297 3 246 You know the following financial variables Required Return US -15.00% Required Return China -11.745% Expected Inflation US- 6.0% Expected Inflation China- 3.0% Spot Rate- $ 0.14 Assume the international parity conditions hold. Calculate NPV by converting renminbi to dollars at expected future spot rates and discounting in dollars. (X.XXX) Please answer very soon will give rating surely"Tax evasion and tax avoidance costs in UK government £34 billion a year" a) In the light of the above statement, explain the terms tax evasion and tax avoidance? b) Discuss the measures that the UK government are taking to migrate tax avoidance and tax evasion?