4. Use the following information for the fictional economy Wee Britain in the year2020:Balance of Payments AccountsCurrent account deficit of $3 billionFinancial account surplus of $3.25 billionEarnings of $150 million for foreign factorslocated in Wee BritainTrade deficit of $500 millionNet of -$50 million in unilateral transfersNational Income and ProductAccountsGNE of $9 billionInvestment of $3 billionTotal government purchases of$2 billiona. Calculate Wee Britain's capital account balance.Is Wee Britain a net lender or a net borrower?Explainb. Calculate net factor income from abroad forWee Britain.c. Calculate Wee Britain's GDP, GNI, and GNDI.d. Calculate consumption for Wee Britain.

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4. Use the following information for the fictional economy Wee Britain in the year 2020:

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 44P: Imagine that the U.S. economy finds itself in the following situation: a government budget deficit...

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Question

4. Use the following information for the fictional economy Wee Britain in the year
2020:
Balance of Payments Accounts
Current account deficit of $3 billion
Financial account surplus of $3.25 billion
Earnings of $150 million for foreign factors
located in Wee Britain
Trade deficit of $500 million
Net of -$50 million in unilateral transfers
National Income and Product
Accounts
GNE of $9 billion
Investment of $3 billion
Total government purchases of
$2 billion
a. Calculate Wee Britain's capital account balance.
Is Wee Britain a net lender or a net borrower?
Explain
b. Calculate net factor income from abroad for
Wee Britain.
c. Calculate Wee Britain's GDP, GNI, and GNDI.
d. Calculate consumption for Wee Britain.

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