QUESTION 1: You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G.
- Consumption 350 billion G
- Transfer payments 100 billion G
- Investment 100 billion G
- Government purchases 200 billion G
- Exports 50 billion G
- Imports 150 billion G
- Bond purchases 200 billion G
- Earnings on foreign investments 75 billion G
- Foreign earnings on Amagre investment 25 billion G
- Compute net foreign investment.
- Compute net exports.
- Compute GDP.
- Compute GNP.
In addition to responding with a quantitative answer, briefly describe how you arrived at your answers.
QUESTION 2: The Nottinghamshire Research Observatory in England calculated that students who attend Nottingham Technical University spend about £2,760 each in the local economy for a total of £50.45 million. In total, the impact of their spending on the local economy is £63 million. Calculate the size of the student spending multiplier.
QUESTION 3: Please explain in three well-structured paragraphs the impact of a change in the savings rate on the output.