Table 23.7 provides some hypothetical data on macroeconomic accounts for three countries represented by A, B, and C and measured in billions of currency units. In Table 23.7, private household saving is SH, tax revenue is T, government spending is G, and investment spending is I.

 Table 23.7

a. Calculate the trade balance and the net inflow of foreign saving for each country.

b. State whether each one has a trade surplus or deficit (or balanced trade).

c. State whether each is a net lender or borrower internationally and explain.

Transcribed Image Text:

SH T G - 700 00 600 800 A B 500 500 350 400 600 500 650 450 с