From the following figure (similar to Figure 18.2): (a) Indicate whether the nation faces a deficit or

Question:

From the following figure (similar to Figure 18.2):

(a) Indicate whether the nation faces a deficit or surplus in its balance of payments at YE = 1000.
(b) Determine the size of the deficit or surplus that the nation faces at YE = 1000 if its marginal propensity to import is MPM = 0.15 and there are no foreign repercussions.