Question

We have the following data for a hypothetical open​ economy: GNP​ = ​$12 comma 00012,000 Consumption​ (C) = ​$7 comma 2007,200 Investment​ (I) = ​$1 comma 0001,000 Government Purchases​ (G) = ​$1 comma 6001,600 Tax Collections​ (T) = ​$1 comma 2001,200 What is the value of private savings plus public​ savings? ​$nothing ​(Enter your answer as an integer. Include a minus sign if necessary.​) What is the value of the current account balance​ CA? ​$nothing ​(Enter your answer as an integer. Include a minus sign if necessary.​)

Answer 1

The value of private savings plus public​ savings is $3,200

The value of the current account balance​ CA is $2,200

Step-by-step explanation:

In order to calculate the value of private savings plus public​ savings we would have to make the following calculation:

Total saving = private saving+public saving

Total saving =GNP-Tax Collections​-Consumption+Tax Collections-Government Purchases

Total saving =$12,000-$1,200-$7,200+$1,200-$1,600

Total saving =$3,200

To calculate the value of the current account balance​ CA we would have to make the following calculation:

value of the current account balance​ CA=GNP-Consumption-Investment-Government Purchases

value of the current account balance​ CA= $12,000 - $7,200 -$1,000-$1,600

value of the current account balance​ CA= $2,200