Question $1(25$ points$)($save your answer as HW$1-$Q$1.$pdf$)$

The world consists of only three open economies, A$,$ B$,$ and C$.$ The table below provides some

macroeconomic data for these three countries.

A B C

Gross domestic product, GDP $150001250020000$

Consumption, C $10255$

$($Gross$)$ Investment, I $1250$

Government spending, G

Taxes, T $3777995$

Exports of goods, EX

Imports of goods, IM $4114$

Private saving, SP $873$

Public saving, SG

National saving, S

Net unilateral transfer $000$

Current account, CA

Sales of country$$s financial assets to foreign residents $3329$

Purchases of foreign financial assets by domestic residents

Official reserve transactions, ORT $414$

Financial account, KA $209$

Capital account

Note: Empty cell only means the data is not given in the question. All terms are measured in dollars.

Additional information about these countries:

Country A:

$$ The country spent $9\%$ of its output on the building up of capital stock and replacing depreciated

capital.

$$ The fiscal surplus is $$477.$

$$ The spending on products produced by B and C reached $$803$ and $$1520\mathrm{.}5$ respectively.

$$ The stock of official reserves remained unchanged.

$$ The private sector sold $$1666$ worth of financial assets to B$$s residents.

Country B:

$$ The country had a balanced $($fiscal$)$ budget.

$$ The value of products sold to C$$s residents reached $$2157.$

$$ The combined total of asset transfers paid out to the residents of A and C was $$668,$ and these

transfers were non$-$market transactions.

$$ Residents of B sold a total of $$861$ of financial assets to residents of A$.$

Country C:

$$ Government spending and consumption represented $17\mathrm{.}5\%$ and $82\mathrm{.}5\%$ of national income

respectively.

$$ The country had twin deficits, and the size of each deficit was $$1250.$

$$ The imports of $($financial$)$ assets from A$$s residents equaled $$526$ while the imports of assets from

B$$s residents topped $$1598.]$