Suppose that in an open economy, GDP $=100,$ Consumption $=73,$ Investment $=41,$ Government expenditure $=20,$ Net Factor Income$=0,$ Imports $=45.$ Because Net Factor Income $=0,$ GDP $=$ GNP$.$

$1$a$)$  What is the value of exports?

$1$b$)$ What is the current account?

$1$c$)$ If the government impose tax, T $=22\mathrm{.}5,$ then what would the government and private savings be while others are constant?

 

Answer rating: 100% (QA)

a To find the value of exports we use the identity textGDP textConsumption textInvestment textGovern... View the full answer