4. Suppose gross saving in the United States is 20 percent of Gross National Product (GNP). a. If business saving is 15 percent of GNP and government saving is 4 percent of GNP, what percent of GNP is personal saving? b. Explain why a federal budget surplus increases national saving while a budget deficit decreases national saving. c. How can a federal budget deficit increase market equilibrium interest rates and reduce private investment and future economic growth?

Q: 10. Suppose that we're in Open Economy with this situations : • C= $85,890 • 1 =$125,000 • G=…

A: An open economy is an economy where there are no barriers to trade or where there is free movement…

Q: Question 3. Suppose that an economy can be described by the following equations: Y=C+I+ G, Y=5,000,…

A: *Answer :-

Q: (e) Suppose the government borrows $20 billion more next year than this year. Using a…

A: The amount of national savings is known because the amount neither consumed nor spent by the govt.…

Q: 7. Suppose you have can invest in a project in Country A or Country B. The CPI in both countries is…

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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: 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…

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

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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: Question 5 Suppose GDP is RM8 billion, taxes are RM1.5 billion, and public saving is RM0.2 billion.…

A: Given, GDP = RM8 billion Taxes = RM1.5 billion Public savings = RM0.2 billion i) Consumption = GDP -…

Q: Refer to Table 25-3. What is the level of private saving for this economy?     $2000     $500…

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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: Private saving is the total amount of savings done by the private (financial and non-financial)…

Q: 2. A prolonged high national savings rate can cause a problem in the domestic economy because.. it…

A: National saving refers to the total amount of money saved by individuals, corporations, and…

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A: Stock is the ownership certificate of any company owned by shareholders.

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

A:

Q: Suppose GDP-11 billion, taxes-3 billion, private saving-0.9 billion, and public saving-0.6 billion:…

A: Consumptiin spending=GDP-taxes =11-3=8

Q: Which of the following is not correct? a Gross domestic product is both total income in an economy…

A: a Gross domestic product is both total income in an economy and total expenditures on the…

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

Q: 42. Suppose a closed economy had public saving of −$6 trillion and private saving of $15 trillion.…

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

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Q: 43. The table below shows aggregate values for a hypothetical economy. Suppose this economy has real…

A: 43. The table below shows aggregate values for a hypothetical economy. Suppose this economy has real…

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A: The consumption demand curve illustrates the negative relationship between interest rates and 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: In economics, a country's national saving is the sum of private and public saving. It equals a…

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

A:

Q: 7. Why does invest only in workers and neglecting capital expenditures hurt workers? Explain

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Q: Suppose that in a closed economy GDP is $50,000, consumption is $35,000, taxes are 10,000 and…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

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

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Q: Use Table: National Income Accounts. The value of national savings is: Table 1: National Income…

A: National savings refers to the sum of public savings and private savings.