Question

Use the following information about the economy of Guyana in 2018 to answer the below question (NOTE - values are in Guyanese dollars):

2018 GDP - $689 billion

2018 Taxes - $117 billion
2018 Investment - $345 billion
2018 Government Spending - $144 billion
2018 Consumption - $454 billion

What was the value of net capital inflow in 2018?  (You can assume no transfer payments.)

(Answers should be in the form "Z billion."  Just enter "Z.")

Answer 1

GDP = C + I + G + (X - IM)

where C is consumption

I is investment

G is government spending

X is export

IM is import

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GDP = C + I + G + (X - IM)

$689 = $454 + $345 + $144 + (X - IM)

$689 = $943 + (X - IM)

=> (X - IM) = $689 - $943

=> (X -IM) = -$254 billion

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Net capital inflow = Import - Export

Net capital inflow = IM - X

Note: (X -IM) = -$254 billion

Net capital inflow = $254 billion

Answer: $254 billion.