Imagine that the economy of Germany finds itself in the following situation: the government budget has a

Question:

Imagine that the economy of Germany finds itself in the following situation: the government budget has a surplus of 1% of Germany’s GDP; private savings is 20% of GDP; and physical investment is 18% of GDP.

a. Based on the national saving and investment identity, what is the current account balance?

b. If the government budget surplus falls to zero, how will this affect the current account balance?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Principles Of Economics

ISBN: 9781506699868

2nd Edition

Authors: OpenStax

See More Books

Question Posted: Nov 01, 2023 04:44 AM

See More Questions

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
How will you sort 1 PB numbers? 1 PB = 1000 TB.
Robert Buey became Chief Executive Officer of Phelps Manufacturing two years ago. At the time, the company was reporting lagging profits, and Robert was brought in to "stir things up." The company...
Sora Industries has 61 million outstanding shares, $121 million in debt, $49 million in cash, and the following projected free cash flow for the next four years: a. Suppose Soras revenue and free...
What are the two categories of data mining and knowledge discovery software?
Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2016, the first month of operations, is shown below. INSTRUCTIONS 1. Complete the worksheet for the month. 2....
Regarding 1031 exchanges, which of these statements regarding debt load in an exchanged property is true? Unset starred question The 1031 exchange doesn't address debt load. The debt load for the new...
Describe the mechanism by which supply creates its own demand.
Imagine that the U.S. economy finds itself in the following situation: a government budget deficit of $100 billion, total domestic savings of $1,500 billion, and total domestic physical capital...
Determine the domain of the function. (x) = x/x 2 9
A $40,000, four-month, 6.5% note payable was issued on October 1, 2015. Which of the following would be included in the journal entry required on the note's maturity date by the borrower?
Describe how the current ratio is used to analyze financial results?What are the components of the ratio and how is the ratio calculated?What does the ratio indicate regarding a company's financial...
Good day, tutor! Kindly help me provide information regarding the needed information below, thank you! Note: All inside the country Philippines Needed information: 1. Product description of Tesla...
An undersea research vehicle has a spherical pressure hull 1.2-mradius. The pressure hull is steel having a yield point of 750M Pa. If the allowable depth of submergence is not to exceed 4.3 km,...
Consider a competitive market for pork with the quantity demanded (per year) at various prices are given as follows: Price (dollars/kg) Demand (million kg) 60 22 80 20 100 18 120 16 Calculate the...
Review the nancial statements of the Lance Arm strong Foundation for 2011 as presented in Table 12-8. 1. Comment as best you can (even in the absence of guide lines as to what constitutes norms for...
How will relating product contribution margin s to the amount of the constrained resource they consume help a company maximize its profits?
Some small entrepreneurs do not have the budget for a full-fledged human resources department; however, that makes compliance with employment laws challenging. What steps would you take to comply...
Explain why diversity is something that should matter to an owner. What would you do to try to achieve it?
You have learned about B-corporations. If you started a new business, would you commit to the rather stringent audit process necessary to become a B-corporation? Why or why not?
Albee, Inc. issued $100,000 face value bonds payable on September 1, 2018 at a price of $92,278. The bonds carried a stated annual interest rate of 8%, payable semi-annually on September 1 and March...
Critically discuss on the four Concurrency control protocols ?
Find f'(x) and find the equation of the line tangent to the graph of f at the indicated value of x. Find the value(s) of x where the tangent line is horizontal. f(x) In (13-9x2+2x); x=1

Imagine that the economy of Germany finds itself in the following situation: the government budget has a

Question:

Step by Step Answer:

a Based on the national saving and investment identity the current account balance CAB can be calcul...View the full answer

Principles Of Economics

Students also viewed these Business questions