mat Tools Table Add-ons Help All changes saved in Drive Normal textArial 2 NAME:
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mat Tools Table Add-ons Help All changes saved in Drive Normal textArial 2 NAME: PLEASE PROVIDE YOUR COMPLETE ANSWERS IN THIS WORD DOCUMENT. THANK YOU. (1) Today, one USD is equal to about 6.6 Chinese Yuan. If one USD was equal to 4 Chinese Yuan, ther: (a) What will be the impact us GDP? Increase, decrease or will not be affected? Please explain briefly. (2 points.) (b) What will be the impact of China's GDP? Please explain briefly. (2 points) (2) Assuming that 75 percent of Total Savings comes from Private savings and 25 percent comes from Government savings: (a) What will be the percentage impact on Total Savings if the Private savings increase by 20 percent? (1.5 points) (b) What will be the percentage impact on Total Savings if the Government savings decrease by 20 percent? (1.5 points) (3) In 2012, the nominal GDP of Norway was 5.20 trilion USD and the real GDP was 5.11 trillion LISn In 2013 tho nExplanation / Answer
GDP = C+ I + G + X-M where x is export and m is import so with increase in import the US gdp will decrease.
1. B –With the same logic as A as the import of US increases so does the export of China increases so we can definitely say that the GDP of china will increase.
2. A –Given 75% of total savings comes from private savings , now if private savings increases by 20% then the increase in total savings will be = (75/100 *120) – 75 =15%
2. B – Given 25% of the total savings comes from govt savings, now if it decreases by 20% then fall in tot savings will be = 25 - (25/100 * 80) = 5%
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