1. Suppose at time t=1, government purchases =0, Taxes =0, that GNP = 1000, that consumption...

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1. Suppose at time t=1, government purchases =0, Taxes =0, that GNP = 1000, that consumption C=700 and investment I = 500 and that the country's foreign debt D =0 a. derive the value of net exports NX (X_M), and national savings (show all your work) b. What is the approximate value of the financial account + the capital account? Following from the scenario above, assume that the current account deficit are financed by borrowing abroad at 10% interest rate. Suppose at time t=2, the government purchases =0, GNP2 =980, C =700 and 12 = 500. C. Based on GNP2, derive the value of, National Savings S2, net exports NX2, and current account CA2 and debt D2 1. Suppose at time t=1, government purchases =0, Taxes =0, that GNP = 1000, that consumption C=700 and investment I = 500 and that the country's foreign debt D =0 a. derive the value of net exports NX (X_M), and national savings (show all your work) b. What is the approximate value of the financial account + the capital account? Following from the scenario above, assume that the current account deficit are financed by borrowing abroad at 10% interest rate. Suppose at time t=2, the government purchases =0, GNP2 =980, C =700 and 12 = 500. C. Based on GNP2, derive the value of, National Savings S2, net exports NX2, and current account CA2 and debt D2