The accompanying table shows the percentage of GDP accounted for by private savings, investment spending, and net

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The accompanying table shows the percentage of GDP accounted for by private savings, investment spending, and net capital inflow in the economies of Capsland and Marsalia. Capsland is currently experiencing a positive net capital inflow and Marsalia, a negative net capital inflow. What is the budget balance (as a percentage of GDP) in both countries? Are Capsland and Marsalia running a budget deficit or surplus?

Capsland Marsalia Investment spending as a percentage of GDP 20% 20% Private savings as a percentage of GDP 10 25 Net ca

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Macroeconomics

ISBN: 978-1319120054

3rd Canadian edition

Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson

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