Saving and investment throughout the world Retrieve the most recent World Economic Outlook (WEO) from the website of the International Monetary Fund (www.imf.org). In the Statistical Appendix, find...

1 answer below »

Saving and investment throughout the world


Retrieve the most recent World Economic Outlook (WEO) from the website of the International Monetary Fund (www.imf.org). In the Statistical Appendix, find the table titled ‘Summary of Net Lending and Borrowing’, which lists saving and investment (as a percentage of GDP) around the world. Use the data for the most recent year available to answer parts (a) and (b).


a. Does world saving equal investment? (You may ignore small statistical discrepancies.) Offer some intuition for your answer.


b. How does US saving compare to US investment? How is the United States able to finance its investment? (We explain this explicitly in the next chapter, but your intuition should help you figure it out now.)


c. From the FRED economic database download real GDP (variable GDPC1) and real GNP (variable GNPC96) for the years 1947 to the latest data. Calculate the percentage difference between GNP and GDP in the United States. Which is larger? Why is that the case?



Answered 130 days AfterDec 10, 2021

Answer To: Saving and investment throughout the world Retrieve the most recent World Economic Outlook (WEO)...

Komalavalli answered on Apr 19 2022
104 Votes
world
    Advanced economies    2015    2016    2017    2018    2019    2020
    Savings     26.3    25.9    26.6    27    27    27.2
    Inve
stment    25.9    25.4    26    26.5    26.6    26.6
    Year    Savings     Investment
    2015    26.3    25.9
    2016    25.9    25.4
    2017    26.6    26
    2018    27    26.5
    2019    27    26.6
    2020    27.2    26.6
world savings Vs investment
Savings     2015    2016    2017    2018    2019    2020    26.3    25.9    26.6    27    27    27.2    Investment    2015    2016    2017    2018    2019    2020    25.9    25.4    26    26.5    26.6    26.6    Year
% of GDP
United states
        Year    Savings     Investment
        2015    20.2    21.2
        2016    18.9    20.6
        2017    19.5    20.8
        2018    19.6    21.1
        2019    19.4    21.4
        2020    19.2    21.2
Savings     2015    2016    2017    2018    2019    2020    20.2    18.899999999999999    19.5    19.600000000000001    19.399999999999999    19.2    Investment    2015    2016    2017    2018    2019    2020    21.2    20.6    20.8    21.1    21.4    21.2    
Sheet3
        Year    GNP    GDP    GNP -...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here