PS 5 - Macro - Questions.pdf . Question 2 Use notes from Z 13 & Z 14 Suppose a country operates under ansconomy (i.e. country trades) In the following table, the first row gives the baseline situation and the second row represents the new situation A) You have to figure out the empty cells for the first and the second row. The relevant formula for the columns is shown B) i)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) investment of $1,600 billion. According to the national saving and investment identity (for open economy), what will be the current account balance (NX) ii) What will be the current account balance (NX) if investment rises by $50 billion, while the budget deficit and national savings remain the same? Use the following formulae S=Y-C-G . S = (Y-C-T) + (T-G) S= 1 + NX Trade Deficit = Investment - Private Savings + Government Deficit 3/6/2021 Subhra B. Saha 5 200 BU Use this table to answer Question 2 A Governmen Investment B=Privat National Consumption Expenditur Tax (0) A=Public le Saving Saving= NX=S-I Income (Vc) le (G) Saving (T-G) Y-C-T) A+B U) 100 20 800 0 40 ? ? ? 100 660 0 800 40 ? ? ? ? Subhra B. Saha 3/6/2021 Pr...us