Finance Questions 5 2-4
1. Use the economic data for the fictional country of Sandia to answer the following questions. (Assume the unilateral transfers and net income balance is zero)
Sandia Economic Data
(billions)
|
| Gross Domestic Product |
$ 400
|
| Imports of Goods and Services |
$ 140 |
| Investment Spending |
$ 20
|
| Private Saving |
$ 30
|
| Exports of Goods and Services |
$ 100
|
| Government Transfers |
$ 40
|
| Government Tax Revenues |
$ 140
|
| Government Spending |
$ 140
|
| Consumption Spending |
$ 280
|
- Calculate Sandia’s Good and Services (G&S) balance. Is it a deficit or surplus?
- Calculate Sandia’s government budget balance. Is it a deficit or surplus?
- Write out the national income identity. Verify whether Sandia’s data satisfies the identity.
- Write out the twin-deficit identity. Verify whether Sandia’s data satisfies the identity.
International Finance Theory and Policy - Chapter 5: Last
Updated on 1/5/08
