We have the following data for a hypothetical open economy: GNP = $10 comma 00010,000 Consumption (C) = $8 comma 2008,200 Investment (I) = $1 comma 2001,200 Government Purchases (G) = $1 comma 2001,200 What is the value of the current account balance? $nothing (Enter your answer as an integer. Include a minus sign if necessary ).

Question

Henderson

Business

9 December, 03:50

We have the following data for a hypothetical open economy: GNP = $10 comma 00010,000 Consumption (C) = $8 comma 2008,200 Investment (I) = $1 comma 2001,200 Government Purchases (G) = $1 comma 2001,200 What is the value of the current account balance? $nothing (Enter your answer as an integer. Include a minus sign if necessary ).

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Answers (1)

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Mylee Spears · Answer 1

Current account balance. = - $600

Explanation:

Given:

GNP = $10,000

Consumption (C) = $8,200

Investment (I) = $1,200

Government Purchases (G) = $1,200

Find:

Current account balance.

Computation:

GNP = Consumption (C) + Investment (I) + Government Purchases (G) + Current account balance.

$10,000 = $8,200 + $1,200 + $1,200 + Current account balance.

Current account balance. = $10,000 - $10,600

Current account balance. = - $600