. Explain the difference between public & private saving. 2. Compare & contrast stocks & bonds. . Graph the market for loanable funds such that current national saving is at a level of $500 million and the real interest rate is at 2.5%

Q: Y=C+I+G. Y=8,000 G=2,500. T=2,000. C=1,000+2/3(Y-T) 1=1,200-100r a) In this economy, compute private…

A: here we calculate the  private saving, public saving and national saving by using following method…

Q: use the analysis for the market of loanble funds to illustrate and explain how the following…

A: Answer: Introduction: Saving: saving is known as the supply of loanable funds. The suppliers of…

Q: - Consider an economy described by the following equations: Y = C +1 + G AND, Y = 20,000; G = 4,000;…

A: Given Information : Y= C+I+G Y=20,000 C=1000+0.8(Y-T) I=2500-120r G=4000 T=4000

Q: Exports (x) 10 rnment Purchases of goods and services (G) 120 Imports (m) 15 Gross Domestic Product…

A:

Q: 4.4 how am i supposed to show this, are there going to be two lines crossing over eachother?

A: An increase in firm’s expected profits from an investment projects will reduce the demand for…

Q: Consider a closed economy. If national saving is 1000, GDP is 6000, and consumption is 4500. Further…

A: The financial value of all finished merchandise and services made within a rustic throughout an…

Q: 1. Assume that the loanable funds market in country X is currently in equilibrim represented by the…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: This person earns $1000 of income today and $2000 income next year. Point C represents his…

A: The budget constraint for a two-period consumption is : [Ct+Ct+1/rt+1]=[Yt+Yt+1/rt+1] Ct is the…

Q: A closed economy has income Y of 1200, consumption C of 800, government purchases G of 200, and…

A: Given The value of income, consumption, government expenditure and tax is given below Y=1200 C=800…

Q: Suppose the government borrows $20 million more next year than this year. a. Draw and fully label a…

A: PLEASE FIND THE ANSWER BELOW.

Q: 60. Suppose that in a closed economy GDP is $10,000, consumption is $6,500, and taxes are $2,000.…

A: Gross Domestic Product is the value of all final goods and services produced in an economy over a…

Q: Graph the market for loanable funds such that current national saving is at a level of $500 million…

A: In market for loanable funds, equilibrium occurs where quantity of loanable funds demanded is equal…

Q: T = 2,000 C = 1000+ 2/3 ( Y - T ) %3D | = 1,200 - 100r in this economy, compute private saving,…

A: here we calculate the following terms by using the given information which are as follow-

Q: A closed economy has income of $1,000, government spending of $200, taxes of $150,and investment of…

A: "Savings refers to the process of setting aside some part of income for future use." Individuals may…

Q: Consider this information for Saudi Arabia on 2018; GDP (Y) is 2,631 Billion SAR, Consumption (C) is…

A: National savings is the difference between the GDP and the consumption and government expenditures.…

Q: Scenario 2: The government increases deficit spending by $100 Billion dollars to invest in green…

A: The given question has been solved below.

Q: c. Show that the real interest rate determined in part a sets national saving equal to planned…

A: Note: assuming that the green tick is for the correct answer in parts a and b.  The real interest…

Q: Consider an economy in which GDP is $30 billion. Tax revenue is $7 billion, consumption is $15…

A: Given information: GDP (Y) is $30 billion Tax revenue (T) is $7 billion Consumption (C) is $15…

Q: In which year was water the most expensive in real terms? Show work.  What was the real wage for…

A: We need to calculate real value of water in each year to determine in which year it is most…

Q: What is national saving? What is privet saving ?what is public saving? How are these three variables…

A: National savings is given by the equation = National Income - Consumption - Government expenditure.…

Q: Suppose a closed economy is characterized by: Y=12000, G = 3000, T = 3000, I = 5000 - 2000r, C =…

A: Given:Y=12000G = 3000T = 3000,I = 5000 - 2000rC = 500 + 0.5(Y-T)

Q: Suppose GDP in this country is $480 million.  National Income Account Value (Millions of dollars)…

A: We have, GDP = $480; The government purchase = $150; The taxes minus transfer payments = $180;…

Q: Show the effect on the real interest rate and equilibrium quantity of loanable fUkds loanable funds…

A: Loanable funds market is basically a kind of place where borrowing and lending takes place. The…

Q: Show the effect on the real interest rate and equilibrium quantity of loanable funds of a decrease…

A: The graph is showing the decrease in supply and demand of loanable funds.

Q: Os the basis of the above table, Net Investment s $1,040 billion $2,000 billion $1.260 billion…

A: In macroeconomics, an important concept related to investment is the gross investment and the net…

Q: Harper is a short-lived human who only lives for two years: current year and next year. In the…

A: Time period (life of Harper) = 2 years First year income = $189 First year tax = $36 Second year =…

Q: The table shows the demand for loanable funds schedule and the supply of loanable funds schedule…

A: In the loanable  fund market, real interest rate is determined by the intersction of quantity…

Q: Suppose Indian government borrows 50,000/- more next year than this year. Use a supply-and-demand…

A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…

Q: Question 5 Use the analysis for the market for loanable funds diagram to illustrate and explain how…

A: Answer: Introduction: If the government changes the tax code, allowing individuals to reduce their…

Q: not understanding how to show this

A: The increase in the household savings rate means that consumers will be willing to consume less and…

Q: Explain/Discuss Three ways that a reduced rate of interest influences real capital investment.

A: Real capital investment is the sum of money which is given to a company to achieve it business…

Q: Consider the following data (in billion $) for a country in a particular year: (assume this country…

A: It is common to include GDP as part of a government subsidy or lifestyle in a country. When…

Q: Interest Rate Question 31 Which of these scenarios would result in the change shown below in the…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: 4. An economy has government purchases of 1000. Desired national saving and desired investment are…

A: Full employment is what is happening in which all suitable work assets are being utilized in the…

Q: According to how we model the Loanable Funds market in Ch. 6 (considering household savings and…

A: The market for loanable funds shows the interaction between the savers and borrowers in the economy.…

Q: 1. Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public…

A: We are going to find the National savings, investment and consumption expenditure using economic…

Q: real interest rate

A: The saved amount out of income level depicts the savings. The interest rate depends upon so many…

Q: 25. Suppose that in a closed economy GDP is 10,000, consumption is 6500, and taxes are 2000. What…

A: Here we calculate the value of government expenditure would make national saving equal 100 by using…