The following table provides some hypothetical data on macroeconomic accounts for three countries represented by A, B, and C and measured in billions of currency units. In the table, private household saving is SH, tax revenue is T, government spending is G, and investment spending is I.
|
|
A
|
B
|
C
|
|
SH
|
700
|
500
|
600
|
|
T
|
00
|
500
|
500
|
|
G
|
600
|
350
|
650
|
|
I
|
800
|
400
|
450
|
a. Calculate the trade balance (E - Z) and the net inflow of foreign saving (SF) for each country.
b. State whether each one has a trade surplus or deficit (or balanced trade).
c. State whether each is a net lender or borrower internationally and explain.