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1) A small island nation is gifted with everlasting coconut trees.  These trees live everlastingly and no new tress can be planted.  Every year $1 million value of coconuts fall off trees and can be eaten locally or exported to other countries.  In past years island national ran present account surpluses and capital and financial account deficits, acquiring foreign bonds.  It now owns= $500,000 of foreign bonds.  Interest rate on these bonds is= 5% per year.  Residents of island nation consume= $1,025,000 per year.  Determine the values of investment, national saving, current account balance, the capital, and financial account balance, net exports, GDP, and GNP in this country?

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  • Category:- Basic Finance
  • Reference No.:- M914978

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