During the year, Japan had a current-account surplus of $98 billion and a financial-account deficit, aside from the change in its foreign exchange reserves, of $67 billion.
a. Assuming the preceding data are measured with precision, what can you conclude about the change in Japan’s foreign exchange reserves during the year?
b. What is the gap between Japan’s national expenditure and its national income?
c. What is the gap between Japan’s saving and its domestic investment?
d. What was Japan’s net foreign investment for the year?
e. Suppose the Japanese government’s budget ran a $22 billion surplus during the year. What can you conclude about Japan’s private saving-investment balance for the year?

  • CreatedJune 27, 2014
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