Consider a closed economy without a government. If the GDP of the economy is $25,000 and the saving rate in the economy is 25 percent, the aggregate saving in the economy is ________. A) $3,320 B) $6,250 C) $8,000 D) $8,650

Q: Scenario 3: Initially, the government's budget is balanced; then the government significantly…

A: Please find the answer below.

Q: QUESTION 13 If the consumption function is: C - 0.68(Disposable Income) + 400, the MPC- and…

A: Given: C= 0.68(Disposable income)+400

Q: 2. We have the following information on the economy: - Aggregate consumption is $1,000 when…

A: Given; Aggregate consumption when disposable income is zero= $1000 Aggregate disposable income when…

Q: Refer to Figure 8.3. For this society, aggregate saving is positive if aggregate income is .above…

A: For this type of society the aggregate savings will be positive when the aggregate income is above…

Q: assume an economy in which: (i) there are no exports and no imports, (ii) investors always want to…

A: Answer: Given, Net exportNX=Export-Import=0-0=0InvestmentI=$200 billionGovernment expenditureG=$500…

Q: The next three questions involve the following situation. Consider a closed economy in which I =…

A: * ANSWER :-  As per guidelines we answered first 3 sub parts only, so give me comment if any doubt…

Q: Consumption and Saving are called mirror images of each other. Explain in detail also add MPC and…

A: Consumption is the level of income spent for survival. Saving is the amount of income leftover after…

Q: Suppose in a closed economy GDP equals $15 trillion, consumption equals $7.5 trillion, the…

A: Public saving =T-G=budget surplus=$900 billion=0.9 trillion The public saving is $0.9 trillion…

Q: Assume an economy in which: (i) there are no exports and no imports, (ii) investors always want to…

A: The planned investment is the amount that the firms are intended to invest for purchasing new…

Q: Explain the difference between saving and investment as defined by a macroeconomist.  c. Which of…

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

Q: 270 200 130 60 450 100 200 300 Aggregate income (Y) Figure ?Refer to Figure 8.3. Which of the…

A: From the above given graph, Statement 1 is false since at aggregate income 300 the aggregate…

Q: Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and  public…

A: Given that, GDP = $8billion  Taxes = $1.5 billion  Private saving = $0.5 billion  Public saving =…

Q: Explain what happens to consumption, investment, and the interest rate when the government increases…

A: Increase in taxes is a part of contractionary fiscal policy of government. Consumption and…

Q: If there is an increase in the personal income tax rate, and people do not receive a pay increase,…

A: The tax is a unilateral payment made by the public towards the government for various purposes such…

Q: Consider an economy in which GDP is $8.2 trillion, public saving is -$0.2 trillion, taxes are $0.9…

A: Economy means managing the available resources carefully.

Q: Consider a closed economy without a government. If the GDP of the economy is $63,000 and the…

A: Equilibrium without government is at Y= C + I Y= income  C= consumption  I= investment

Q: Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at banks.…

A: Equilibrium in the loanable funds market occurs at the intersection of demand and supply of loanable…

Q: Explain the difference between saving and investment as defined by a macroeconomist. Which of the…

A: The difference between saving and investment as defined by a macroeconomics is- Investment Saving…

Q: Suppose GDP is Rs.10.3 trillion, taxes are Rs.1.8 trillion, private saving is Rs.1.2 trillion, and…

A: As per Keynesian economics, the aggregate demand is summation of consumption expenditure, investment…

Q: Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in…

A: A variety of measures of national income and output are used in economics to estimate total economic…

Q: Question 3. Suppose that Y=C + 1+ G in a closed economy and GDP (Y) is 6,000. Consumption (C) is…

A: * SOLUTION :-  * 3)

Q: Q.2) Assume that GDP (Y) is 6,000. Consumption (C). is given by the equation C= 600 + 0.6(Y- T).…

A: here by using the given information we calculate the following terms so the calculation of the…

Q: Use the following information for all of the questions in this Check Point: Y $14 trillion C- $8…

A: The economies around the globe tend to have various entities, which are in the form of households,…

Q: Suppose GDP is $9 trillion, taxes are $1.9 trillion, private saving is $0.6 trillion, and public…

A: We can utilize the national income identity here. Y= C+ I +G C= Y - I - G I=S National Saving =…

Q: The consumption (Ca) and investment (Ia) functions of this economy are: Ca = 10 + 0.8(Y – T) – 40r…

A: A way of measuring the economic wellbeing of a nation, the GDP is the amalgamation of all the values…

Q: Given the following on a closed economy. C = 40 + 0.8Y a I= 55 – 200, C= consumption I= Investment G…

A: [As per answering policy, only 1st 3 parts can be answered, so you've to post rest 3 parts in…

Q: Suppose that disposable income, consumption, and saving in some country are $400 billion, $350…

A: Introduction: Income remaining after deduction of taxes social security charges available to be…

Q: Level of Output and Income (GDP = DI) Consumption Saving АРС APS MPC MPS $480 $-16 520 560 16 600 32…

A: •The difference between income and savings is referred to as consumption. As income, it might be…

Q: In a simple, private economy, suppose that the MPC is 0.8 and investment rises by $20 million.At the…

A: The investment multiplier says that how much change of investment would cause how much change in…

Q: The following table provides data for output (real GDP) and saving. a. Fill in the missing numbers…

A: The given table, a) We know, GDP = C+S C = GDP-S So, At GDP = $480, S = -16, C= 480- (-16) C = 496…

Q: Which of the following would likely increase private saving?   a. both expansion of means testing…

A: Means test determines where the household is eligible to receive benefits from including different…

Q: Refer to Figure 26-1. What is measured along the vertical axis of the graph?   a.  The tax rate…

A: The curve that depicts the quantities of goods being demanded at various levels of price by…

Q: Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and  public…

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

Q: Assume that a nation's marginal propensity to consume (MPC) is 0.75. A highly productive,…

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

Q: table below shows levels of employment, output, consumption, and saving for a private closed…

A: Gross Domestic Product= $380 billion Consumption= $356 billion Savings= $24 billion GDP= Consumption…

Q: Please explain how a rise in the household saving rate can cause a fall in GDP?

A: Gross domestic product is the monetary value of all total goods and services produced domestically…

Q: In a closed economy with fixed prices and wages and where the marginal propensity to consume of the…

A: MPC is defined as the percentage of an increase in wages that a consumer spends on goods and…

Q: The government raises taxes by Rs. 100 billion. If the marginal propensity to consume is 0.6, what…

A: a. Public saving: Public saving is the difference between the taxes and government spending. If tax…

Q: Suppose the MPC in an economy is 0.65. The APC is initially 0.9 and disposable income is $6 billion.…

A: Disposable income is the income available to the people after paying the taxes and social security…

Q: Consider the following data for a closed economy: Y = $13 trillion C = $6 trillion |= $3 trillion TR…

A: In an economy, private saving is made by the households and public saving is made by the government.

Q: 6. You are given the following consumption function: C = RM150 million +0.75Yd Based on the above…

A: We have given consumption function C=150+0.75Yd where yd is a disposable income.

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.