We have the following data for a hypothetical open economy: GNP = $9,0009,000 Consumption (C) = $7,5007,500 Investment (I) = $1,4001,400 Government Purchases (G) = $1,6001,600 Tax Collections (T) = $1,200what is the value of total savings S? what is the value of current account balance CA?

-$100 and - $1,500

Explanation:

The computation is shown below:

As we know that

Total saving = Private saving + public saving

where,

Private saving is

= Y - T - C

= $9,000 - $1,200 - $7,500

= $300

And, public saving is

= T - G

= $1,200 - $1,600

= - $400

So, the total saving is

= $300 - $400

= - $100

And, the value of current account balance is

= GNP - C - I - G

= $9,000 - $7,500 - $1,400 - $1,600

= - $1,500