Question

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 invest-

ment is zero:

a. Consumption

b. Net exports

c. GDP

d. Net factor payments from abroad

e. Private saving

f. Government saving

g. National saving​

Answer 1

Ooooooooooooooo bhai