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- A country has domestic investment of $100 billion. Its citizens purchase $500 of foreign assets and foreign citizens purchase $300 of its assets. What is national saving?Answer1. $600 billion2. $300 billion3. $100 billion4. -$100 billionExplain the difference between foreign direct investment (FDI) and foreign portfolio investment (FPI)? Explain which one is more useful to accelerate economic growth of home country.(b) Discuss how changes in local real interest rates and foreign interest rates impact the decision to carry out investment by (i) foreigners and (ii) locals.
- 14... Consider this statement: “Devoting a larger share of national output to investment would help to restore rapid productivity growth and rising living standards.” Under what conditions is the statement accurate?Assume that four-sector model is at play. C+I+G. All expenditures are autonomous. Given: C = 700 + 80 (1-t)Y t = 0.25 I = 210 - 75i G = 1000 TR = 100 L = 0.20Y - 40i M/P = 800 Required: 1. Assuming that the fourth sector is included with an autonomous net exports of 250, what happens to equilibrium income and interest rate?ces Price Level 128 125 122 119 116 C $ 18 20 22 24 26 Ig $2 4 6 8 Multiple Choice 10 G $ 3 3 3 3 3 Price Level and Gin the table. X and M in the table. In the accompanying table for a particular country, C is consumption expenditures, Ig is gross investment expenditures, Gi X is exports, and M is imports. All figures are in billions of dollars. The interest-rate effect of changes in the price level is sh Price Level and Ig in the table. Cand Gin the table. X $1 2 3 4 5 M $5 4 3 2 1 Real GDP Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
- Let $1 = .78 € and $1 = 6.3 CNY (Chinese Yuan Renminbi) How many CNY will be purchased for 1 €You are given the following information about an economy: Gross private domestic investment = 40 Government purchases of goods and services = 30 Gross national product (GNP) = 200 Current account balance = -20 Taxes = 60 Government transfer payments to the domestic private sector = 25 Interest payments from the government to the domesticprivate sector = 15 (Assume all interest payments by the government go to domestic households.) Factor income received from rest of world = 7 Factor payments made to rest of world = 9 Find the following, assuming that government investment is zero: a. Consumption, Net exports,GDP and Net factor payments from abroad b. Private saving, Government saving and National savingQuestion 1:In Ghana, the capital share of GDP is about 40 percent, the average growth in output is about2 percent per year, the depreciation rate is about 3 percent per year, and the capital–output ratiois about 1.5. Suppose that the production function is Cobb–Douglas and that Ghana has beenin a steady state.a. What must the saving rate be in the initial steady state? [Hint: Use the steady-staterelationship, sy = (δ + n + g)k.]b. What is the marginal product of capital in the initial steady state?c. Suppose that public policy alters the saving rate so that the economy reaches the GoldenRule level of capital. What will the marginal product of capital be at the Golden Rule steadystate? Compare the marginal product at the Golden Rule steady state to the marginal productin the initial steady state. Explain.d. What will the capital–output ratio be at the Golden Rule steady state? (Hint: For the Cobb–Douglas production function, the capital–output ratio is related to the marginal product…
- Investment is back bone to a nation’s GDP. How you will describe it and what elementscauses to shifts in Investment Demand Curve. Explain in your own words.Most of the investment decisions in the U.S. economy are made by a. consumers. b. governmental institutions. c. businesses. d. international financial agencies.1- In a country, if the consumption is OMR 14000, exports OMR 5300, government purchases are OMR1500, imports are 3400, and investment is OMR 2800, What is the GDP for that year? ____________ Select one: a. OMR 22000 b. OMR 20002 c. OMR 20200 d. OMR 20020 2- Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 2,500 consumption equals 7,500 and government purchases equal 2,000 the outcome is private saving, public saving, and national saving is 1,000, 500, and 1,500, respectively. Select one: a. False b. True
