Ask Question
17 January, 08:06

Suppose that investment is $130 billion, saving is $110 billion, government expenditure on good and services is $120 billion, exports are $210 billion and imports are $220 billion.

What is the amount of tax revenue and the government budget balance?

+1
Answers (1)
  1. 17 January, 08:31
    0
    The amount of tax revenue is $130 billion and teh governemnt budget balance is negative 10 billion

    Explanation:

    We are given

    I = 130 billion, S = 110 billion, G = 120 billion, X = 210 billion and M = 220 billion, we need to derive tax revenue = T?

    At equilibrium; S+T + M = I+X+G or

    110 + T + 220 = 130 + 210 + 120 or

    T + 330 = 460, implies tax revenue (T) = $130 billion

    the government budget is calculated as follows:

    Government budget = G-T = 120 minus 130 = - 10 billion
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose that investment is $130 billion, saving is $110 billion, government expenditure on good and services is $120 billion, exports are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers