Principles of Economics by Libby Rittenberg and Timothy Tregarthen. Read chapter 21.

Part 1

You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G.

• Consumption 350 billion G
• Transfer payments 100 billion G
• Investment 100 billion G
• Government purchases 200 billion G
• Exports 50 billion G
• Imports 150 billion G
• Bond purchases 200 billion G
• Earnings on foreign investments 75 billion G
• Foreign earnings on Amagre investment 25 billion G

1. Compute net foreign investment.
2. Compute net exports.
3. Compute GDP.
4. Compute GNP.

In addition to responding with a quantitative answer, briefly describe how you arrived at your answers.

Part 2

Please explain in three well-structured paragraphs the impact of a change in the savings rate on the output. Cite any references in apa format.

Read Chapter 22

Part 3

The Nottinghamshire Research Observatory in England calculated that students who attend Nottingham Technical University spend about £2,760 each in the local economy for a total of £50.45 million. In total, the impact of their spending on the local economy is £63 million. Calculate the size of the student spending multiplier.