Suppose that in the U.S. in 2007, investment is $1,600 billion, saving is $1,400 billion, government expenditure on gods and services is $1,500 billion, exports are $2,000 billion and imports are $2,500 billion.
a) What is the amount of tax revenue?
b) What is the government budget balance?
c) IS the government exerting a positive or negative impact on investment?
d) What fiscal policy action might increase investment and speed economic growth? Explain how the policy action would work.