Argentina has net capital outflow of $2,000, government purchases of $10,000 and consumption of $40,000. Which of the following is correct? If its domestic investment is $2,000, its GDP is $52,000. If its domestic investment is $4,000, its GDP is $56,000. If its domestic investment is $10,000, its GDP is $58,000. None of the above are correct. a. b. C. d. A a B) b

Argentina has net capital outflow of $2,000, government purchases of $10,000 and consumption of $40,000. Which of the following is correct? If its domestic investment is $2,000, its GDP is $52,000. If its domestic investment is $4,000, its GDP is $56,000. If its domestic investment is $10,000, its GDP is $58,000. None of the above are correct. a. b. C. d. A a B) b

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Open-Economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 3QCMC

See similar textbooks

Similar questions

In a country, private savings equals 600, the government budget surplus equals 200, and the trade surplus equals 100. What is the level of private investment in this economy?
The country of Freedonia has a GDP of $4000, consumption of $1500, and government purchases of $900. What does this situation imply?Question 1 options:Investment is equal to $1600.Investment plus net capital outflow is equal to $1600.Investment plus net exports is equal to $2400.Saving is equal to $2400. Please give me correct answer with calculation and full explanation otherwise i give multiple downvote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
The country of Meditor, a small country with a closed economy, uses the merit as its currency. Recent national income statistics showed that it had GDP of $600 million merits, no government transfer payments, taxes of $150 million merits, a budget surplusof $40 million merits, and investment of $100 million merits. What was its consumption and government expenditures on goods and services? Please show you calculation
ProblemYou are given the following information about an open economyGross private domestic investment:40Government purchases of goods and services:30Gross national product(GNP):200Current account balance:-20Taxes:60Government transfer payment to the domestic private sector:25Interest payments from the government to the domestic privatesector:15Factor in come received from the rest of the world:7Factor payments made to the rest of the world:9Calculate the following:a)Consumptionb)NetExportsc)GDPd)Net factor payments from abroade)Private savings (f) Government savings (g) National savings
b). Divide each circle proptionately according to the percentage exports made up by primary products and the percentage made up by manufacturers.
Discuss the role of budget surpluses and trade surpluses in national saving and investment
A small open economy, Nevaco's real GDP is $100,000, the MPS is 0.20, and the marginal propensity to consume foreign goods is 0.10. All else being the same, if Nevaco's real GDP decreases by $10,000, then the decrease in its total consumption is the decrease in consumption of goods produced in Nevaco is_______, and the decrease in its trading partners___is_ $8,000; $2,000; imports; $1,000 O $10,000; $8,000; exports; $2,000 O $8,000; $7,000; exports; $1,000 $10,000; $10,000; imports; $1,000
If the value of a nation’s imports exceeds the valueof its exports, which of the following is NOT true?a. Net exports are negative.b. GDP is less than the sum of consumption,investment, and government purchases.c. Domestic investment is greater than nationalsaving.d. The nation is experiencing a net outflow ofcapital.
What is the saving and investment equation? If national saving declines what will happen to domestic investment and net foreign investment?
Which scenario best demonstrates foreign direct investment? Salia started a Polish restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Poland. Super Blooms, a reputable vegetable plant company in Holland, exports tomato, pepper, and potato garden plants across the globe. Ups n Downs Inc., a Chinese firm, supplies roller coaster components in the United States. Domesticity, a U.S.-based office furniture company, has set up its own assembly plant in Japan to cater to the needs of the Asian market. Lux Linens, a fabric conglomerate in the United States, imports raw silk from China and Italy.
Suppose a country, Macroland, doesn't trade with other countries. Its GDP is $20 billion. Its government purchases $3 billion worth of goods and services each year, collects $3 billion in taxes, and provides $1 billion in transfer payments to households. Private saving in Macroland is $4 billion. What is investment in Macroland? Question 16 options: $1 billion $3 billion $2 billion $4 billion
In 2010, the economy of the Utopia exported goods worth $232 billion and services worth another $87 billion. It imported goods worth $225 billion and services worth $56 billion. Receipts of income from abroad were $110 billion while income payments going abroad were $91 billion. Government transfers from the Utopia to the rest of the world were $23 billion, while various Utopia government agencies received payments of $16 billion from the rest of the world. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for Utopia in 2010.