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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 are 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:

a. Consumption
b. Net exports
c. GDP
d. Net factor payments from abroad
e. Private saving
f. Government saving
g. National saving

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M948302

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