If domestic savings are insufficient to finance domestic private
investment and exports are greater than imports, it is most likely
that the fiscal budget has a:
A) deficit that is less than the trade surplus.
B) deficit that is greater than the trade surplus.
C) surplus that is greater than the trade surplus.
If domestic savings are insufficient to finance private investment then it is most likely to be a case of fiscal budget deficit greater than the trade surplus. As exports are greater than imports, it is a case of trade surplus.
Answer is B) deficit that is greater than the trade surplus.
If domestic savings are insufficient to finance domestic private investment and exports are greater than imports,...
27. If the value of a country's exports is greater than the value of its imports,it is: A) B) C) D) running a trade surplus. running a trade deficit. in an economic contraction. likely to find its investment spending greater than its level of saving
Country private domestic savings of $650 billion, a government deficit of $200 billion, and private domestic investment of $500 billion. What is the trade surplus / deficit?
HON 54 Suppose an economy has a private domestic savings of $245 billion, a government surplus of $500 billion, and private domestic investment of $1,125 billion. How much is the trade deficit (in billions of dollars)? Recall the savings investment formula: 5+ (M - X) = 1 + (G-T) Provide your answer below: billion
Recall that national savings (S) is the sum of private savings and public savings. S = SP + S a. Show that private savings can be written as a function of investment, the current account and the government's budget deficit. (3 marks) b. Show that the current account can be written as a function of private savings, investment and the government's budget deficit. What does this imply about the ways that the government can reduce the current account deficit? (3...
Suppose an economy has a private domestic savings of $444 billion, a government deficit of $210 billion, and private domestic investment of $400 billion. How much is the trade deficit (in billions of dollars)? Recall the savings investment formula: S + (M – X) = I + (G - T)
can you help me explaining why the answer is C?
255 Low private savings and/or high investment tend to: A) produce a current account surplus that must be balanced by net capital exports. B) produce a current account deficit that must be balanced by net capital exports. C) produce a current account deficit that must be balanced by net capital imports. 255. C is correct. Low private savings and/or high investment tend to produce a current account deficit that must...
1) Use the national income identity (S-1) = (G + TR - TA) + (X-M) to answer the following questions as true, false or uncertain and justify your answer. a). If the budget deficit is positive, imports are likely to increase more than exports. (8 points) b) If the budget deficit decreased by $15 billion, private domestic saving decreased by $20 billion, exports increased by $10 billion, and imports increased by $15 billion. Domestic investment must have increased by $30...
Questions: c) An emergency tariff on a wide range of imports would be effective in addressing U.S deficits and forcing other nations to purchase more U.S. exports; d) One reason the U.S. does not export more is lagging investment in domestic industries. Why Protectionism Cannot Cure the Trade Deficit The causal link between investment flows, exchange rates, and the balance of trade explains why protectionism cannot cure a trade deficit. In his 1997 book, One World, Ready or Not, Washington...
Assume the GDP is $6,000, private domestic savings are $1,100, and the government budget deficit is $200. Consumption is $3,800, and the trade deficit is $100. Find: (a) Investments (I), (b) Government spending (G)
4) Calculate the values for government purchases (G), private domestic saving (S), and private domestic investment (1) from the following information (all variables are in billions of dollars). National income Disposable income Consumption Budget Deficit Net Exports Y = 5,200 YD = 4,400 C = 4,100 BD = 150 NX = 110