2. Economists in Funlandia, a closed economy, have collected the following information about the economy for a particular year: Y = 10000, C = 6000, T = 1500 and G = 1700. (a) What is the amount of private saving? (b) What is the amount of public saving? (c) What is the amount of national saving? (d) Suppose that the amount of investment in the economy, I, relates to the real interest rate r in the following manner: I = 3300 – 100r. What is the level of r so that all the saving in the economy goes into investment?

Q: ume thhe GDP - $100.000; taxes $22.000; government purchases - $25.000; national saving $15,000.…

A: Consumption expenditure amounts to the sum total of spendings made by an individual for consumption…

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: 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: Suppose that in a closed economy GDP is equal to $33,000, consumption equal to $18,000, government…

A: Given; GDP in a closed economy=$33000  Consumption= $18000 Government purchases= $6500 Taxes= $6750…

Q: 9. If disposable income is 4,000, consumption is 3,500, government spending is 1,000, and taxes…

A: Here, given information is, Disposable income (Y): 4,000 Consumption (C): 3,500 Government spending…

Q: 14 have these informations representing an economic activities for a mentioned country as followinge…

A: The measure that depicts the monetary value of final goods and services being produced in an economy…

Q: 15. A country is at full employment and produces two types of goods: consumer goods and capital…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: a. There is a trade-off between the amount of consumption that people can enjoy today and the amount…

A: a) The income of the person is limited. If he wants to consume it in future, he has to save it…

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: 4. Suppose you buy your uncle's childhood house for $300, 000 and rent it out to a friend for a…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 1) Draw a saving-investment diagram to show how each of the following changes shifts the IS curve.…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: 5. The market for loanable funds and government policy The following graph shows the market for…

A: Scenario 1: Decrease in tax rate on interest income, encourages people to save more. Savings is the…

Q: 2. The Daisy-land's economy is described as follows: Y=C+I+G; Y=10,000; G-2,000; T-3,000;…

A: National saving is the sum of private savings and public savings

Q: 8. Assume that below is some date from an economy that produces Basketballs and Fishes; Price of…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Table 1 All Numbers are in $ Billion Output Consumption CIncome) Spending 400 Net Taxes 100…

A: Saving = Disposable income - Consumption. Disposable income = Income - taxes

Q: C=150 + 0.65 y 1=120 G= 80 1- Equilibrium level of income 2- Consumption 3- Saving

A: In the Equilibrium Y = C+I+G ( National Income identity)

Q: Show how consumption and savings evolve in an economy that starts with a level of capital well above…

A:

Q: 13. Which of the four government policies to stimulate saving is essential? That is, which policy…

A: 13 Government policy changes are frequently influenced by economic situations. Government policy,…

Q: 2.Distinguish the final goods or services, intermediate goods or services, and capital goods?

A: "In economics goods are of three types- final goods or services, intermediate goods or services, and…

Q: 1)Mcq 1.the economy as whole saving must be equal to a.expenditure b.budget c.public saving…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Q1: Refer to the information provided in the Table below, answer the questions that follow:…

A: Marginal propensity to consume is the proportion of the disposable income that a person wants to…

Q: 5. Explain the difference between investment as the term is used by most people and investment as…

A: Investment- Investment means to invest the money in productive and non productive activities to…

Q: (b). Consider an economy described by the following equations (. Y =C +I+G Y = 5000; G = 1000; T =…

A: The GDP or the gross domestic product is the value of all the final goods and services which are…

Q: (Life-Cycle Hypothesis) According to the life-cycle hypothesis, what is the typical pattern of…

A: Life cycle theory assumes that people consume a fraction of their lifetime income, what they are…

Q: (a) Suppose real GDP per person falls during a devastating recession, which in turn causes…

A: GDP: The gross domestic product, or GDP, is a measurement of the total value of all products and…

Q: all else equal, what does a lower interest rate mean for firms? what does a lower interest rate…

A: Interest rate positively related with the savings and negatively related with the investment. When…

Q: 28 Assume that a national restaurant firm called BBQ builds 15 new restaurants at a cost of $1…

A: Assume that a national resturant firm called BBQ builds 15 new resturants at a cost of $1 million…

Q: 8. In a given year, a country's GDP = $9841, net factor payments from abroad = $889, taxes = $869,…

A: Private savings=GDP-Taxes-Consumption+Net factor income from abroad+Transfer received from…

Q: 6. Suppose that investment is fixed, as in Chapter 3. The paradox of saving suggests (increase? that…

A: We use the following formulas to get answers: Government deficit = Government expenditure -…

Q: . Explain the difference between public & private saving. 2. Compare & contrast stocks & bonds. .…

A: Loanable funds indicate the availability of an amount that can be loaned out in an economy, at a…

Q: an increase in the expected real interest rate tends to raise desired saving, but lower desired…

A: The change in the expected real interest rate affects the level of saving and investment in the…

Q: 2. Suppose an economy begins in steady state. By what proportion does per capita GDP change in the…

A: The measure that depicts the final value of goods and services being produced in an economy during a…

Q: What would be the impact of changing the determinant variables given in the first column (below) on…

A: Investment refers to the process of acquiring an asset or a process with the objective of generating…

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…

Q: Why would the following investment expenditures increase as the interest rate declines? a.…

A: Interest Rate have an effect on Investment Expenditures. With the fall in interest rates, cost of…

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.