small a small open economy, illustrate how a fiscal expansion (such as an increase in government spending) in the domestic economy can affect the flow of capital and goods in the country.
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In a small a small open economy, illustrate how a fiscal expansion (such as an increase in government spending) in the domestic economy can affect the flow of capital and goods in the country.
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- Economics 11. Suppose there are three adjacent countries maintaining their closed economic borders, i.e. Hastina, Mandura, and Ayodya. The government of Hastina sets a lump sum tax of USD 40 trillion and transfers of USD 20 trillion, while also spends USD 30 trillion out of its budget on goods and services. In Mandura, USD 60 trillion of private savings have been accumulated, while investment expenditures reach USD 40 trillion. At the same time, the GDP of Ayodya is USD 300 trillion, while aggregate consumption is USD 180 trillion and investment is USD 90 trillion. It is further known that USD 60 trillion of taxes are collected and transfers of USD 20 trillion has been made. Based on this information, we can conclude that.... a. government budget deficit is the largest in Hastina b. government budget deficit is the largest in Mandura c. government budget deficit is the largest in Ayodya d. all three countries have equal government budget deficithow can you define the domestic economy? And what are the different aspects of the domestic economy?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
- Generally, how does the standard of living in the United States today compare to the standard of living in other countries? To the standard of living in the United States a century ago?The Bureau of Economic Analysis, or BEA, is a government agency collecting various U.S. economy statistics. From the BEA’s website, find data for the most recent year available on U.S. exports and imports of goods and services. Is the United States running a trade surplus or deficit? Calculate the ratio of the surplus or deficit to U.S. exports.There are many people out there providing opinions on the economy. How can differences of opinion about economic policy recommendations be resolved?What is the difference between a government deficit and a trade deficit ?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?
- If there is no trade deficit, budget deficit =$500, what is the difference between savings and planned investment in equilibrium?Question 2Clearly distinguish between each of the following terms: 4.1 Injection and withdrawal 4.2 Consumption spending and Investment spending 4.3 Exports and Imports 4.4 A closed economy and an open economySuppose that the economy is in equilibrium with a trade deficit and that saving is greater than investment. According to the circular flow model, the government's budget a. must be in deficit b. must be in surplus c. must be balanced d. could be in a surplus or a deficit
- Economics Consider the following data for country B, an open economy, for this year: Y = $14 trillion C = $6 trillion G = $2 trillion NX = $3 trillion T = $4 trillion TR = $0.5 trillion a) Find country B’s domestic investment. b) Find country B’s private saving. c) Find country B’s public saving. d) Find country A’s national saving. e) Find country B’s net foreign investmentUsing the South African SoNA 2020 as a reference, discuss examples of the different ways that the SouthAfrican government intervenes in the economy.Sketch a diagram of how a budget deficit causes a trade deficit. (Hint: Begin with what will happen to the exchange rate when foreigners demand more U.S. government debt.)