Q3. 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 domestic private 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: (e.) Private saving (f.) Government saving (g.) National saving
Q3. 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 domestic private 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: (e.) Private saving (f.) Government saving (g.) National saving
Chapter19: Measuring Economic Performance
Section: Chapter Questions
Problem 6P
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Q3.
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 domestic private 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:
(e.) Private saving (f.) Government saving
(g.) National saving
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