Answer:
Imports is 50.
Current account balance is -30.
Total savings is 30.
After tax reduction total savings is 10.
Explanation:
GNP is given as 100.
The consumption expenditure is 70.
The investment expenditure is 40.
The government spending is 20.
The exports are given as 20.
GNP = C + I + G + EX - IM
100 = 70 + 40 + 20 + 20 - IM
100 = 150 - IM
IM = 50
The current account balance is the difference between exports and imports.
Current account balance
= EX - IM
= 20 - 50
= -30
Total savings in the economy is the difference between disposable income and consumption.
Total savings
= Y - C
= 100 - 70
= 30
In case government reduces taxes, the private saving will increase while the public saving will decrease.
Private saving
= Y - T - C
= 100 - 10 - 70
=20
Public saving
= T - G
= 10-20
= -10
Total saving
= Private saving + Public saving
= 20 + (-10)
= 20 - 10
= 10
Answer:
$31.61
Explanation:
In order to determine the amount of interest charged you must first calculate the average daily balance:
average daily balance = [($2,030 x 9) + ($1,450 x 22)] / 31 = $1,618.39
Now we must calculate the daily interest rate:
daily interest rate = 23% / 365 = 0.063%
Finally we multiply the average daily balance times the daily interest rate times the number of days in the billing period:
interest charged = $1,618.39 x 0.063% x 31 days = $31.61
