Discuss the role of budget surpluses and trade surpluses in national saving and investment

Q: 5. Saving and net flows of capital and goods In a closed economy, saving and investment must be…

A: Investing, trading, or running a business all involve the movement of capital. Investment capital,…

Q: A country recently had GDP of $1,200 billion. Its consumption expenditures were $700 billion, its…

A: Given: GDP=$1200 billion Consumption expenditure (C)=$700 billion Government spending (G)=$200…

Q: The impacts of a (a) budget deficit and (b) capital flight on the equilibrium in the open economy…

A: Budget deficit is a financial situation whereby a government of a country borrows more than what it…

Q: Would each of the following transactions be included in net exports or net capital outflow? Be sure…

A:

Q: In a closed economy, saving and investment must be equal, but this is not the case in an open…

A: National income (Y) is the total value of the final output of all services and commodities produced…

Q: In an open economy, national saving equalsdomestic investmenta. plus the government’s budget…

A: An open economy represents that economy that establishes contact with the rest of the world in terms…

Q: Assume that in a small open economy where full employment always prevails, national saving is 500.…

A: Answer:- At the world interest rate, the investment would be 540

Q: 3. You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the…

A: Net foreign investment = Earning on foreign investment - foreign earnings on amagre investment

Q: An open economy is in equilibrium when Y = C + I + G + X - M where Y = national income; C =…

A: Equilibrium level of income Y= C+I+G+X-M

Q: The table given below shows the levels of real GDP (Y) and the corresponding levels of consumption…

A: The measure that depicts the final value of goods and services in an economy within a specified time…

Q: What is the difference between foreign direct investment and foreign portfolio investment.

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

Q: In an open economy, if exports equal $8 billion and imports equal $3 billion, then there is a trade…

A: Net capital outflow is the net flow of funds being invested abroad by a country over a certain…

Q: Briefly explain the circular flow of income in an economy. How does circular flow of income…

A: The Circular Income or Circular Flow is a model of the economy in which major transactions are…

Q: Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government…

A: Given  Gross Domestic Product (Y) = $6000 Consumption (C) = $3800 Personal Disposable Income (YD) =…

Q: Question 5. Assume that in a small open economy with full employment, consumption depends only on…

A: Open Economy:- An open economy is a sort of economy where homegrown factors, as well as substances…

Q: Compare and contrast the three methods of measuring the national income statistics. With examples…

A: 1. The three methods used in the estimation of national income are: Product method Income Method…

Q: country's investment can be financed by ________. a. a government budget surplus b. national saving…

A: For the growth of a nation, investment is the key. Investment allows better and efficient…

Q: Suppose that we’re in an open economy with this situation: - C = $85.890 - I = $125.000 - G =…

A: GDP = C + I + G + (X - M)GDP = 85,890 + 125,000 + 56,700 + (65,000 - 55,000)GDP = 277,590

Q: Compare the impact of an increase in investment demand in a small open economy and a large open…

A:

Q: In an open economy, it is impossible to have national saving equal to domestic investment. Answer…

A: National Savings:- The proportion of remaining money which is not eaten or expended by the…

Q: Suppose that GDP is equal to 1,000, national saving is equal to 200, the current account deficit is…

A: Given: National Savings =200  Government Budget Deficit=-50

Q: Government has resorted to external borrowing to fund government projects such as infrastructure and…

A: Foreign borrowing refers to the borrowings from foreign lenders to fund the various expenditures of…

Q: Poland, after its transformation into a market economy in the early 90's, has consistently been…

A: Economy: It refers to the place under which the people exchange goods and services. The economy is…

Q: You are given the following information about an economy : Gross private domestic investment =. 40…

A: Net factor income is the difference between the factors income received from the rest of the world…

Q: Calculate net exports and the amount of net foreign lending for a hypothetical small open economy…

A: Savings = Investment + Net Export Savings = $145 billion Investment = $118 billion   Therefore,  Net…

Q: 5. Saving and net flows of capital and goods In a closed economy, saving and investment must be…

A: Aggregate output is the sum of consumption, investment, government spending and net exports in an…

Q: 5. Saving and net flows of capital and goods In a closed economy, saving and investment must be…

A: In the circular economy, money is utilized to purchase goods and services. Goods and services go in…

Q: Suppose that the government deficit is 20, interest on the government debt is 15, taxes are 55,…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Turkey has run a trade deficit for almost every year during the past few decades. Which of the…

A: The current account deficit began to pose a threat to Turkey's economy in the early 2000s, and it…

Q: In an open economy, national saving equals domesticinvestmenta. plus the net outflow of capital…

A: An open economy is one that is open to trade with other economies. International trade refers to the…

Q: In a closed economy, if Y and T remained the same, but G rose, and C fell but by less than the rise…

A: Private Saving can be calcuklated as:Private Saving = GDP - Consumption ExpenditurePrivate Saving =…

Q: 10.Suppose in a small open economy, real GDP is $500 billion, consumption is $300 billion,…

A: GDP=Y=$500 C=$300 I=$120

Q: A large open economy has desired national saving of Sd = 20 + 200 rw and desired national investment…

A: Given:NationalSd=20+200rwId=75-200rwForeign:SdFor=40+100rwIdFor=75-400rw

Q: When the government budget deficit rises, national saving is reduced, interest rates rise, and…

A: When the government budget deficit rises, national saving is reduced, interest rates rise, and…

Q: Multiple choice question In a small economy the difference between saving and investment…

A: An open economy is such an economy in which the equilibrium interest rate is the world interest…

Q: A large open economy has desired national saving of Sd = 1200 + 1000rw, and desired national…

A: Sd = 1200 + 1000rw Id = 1000 - 500rw desired national saving = 1300 + 1000rw desired national…

Q: Compare the impact on investment spending of an increase in the government’s budget deficit in a…

A: In an open economy there would be trade,whereas in the closed economy there is no trade. Therefore…

Q: b. positive net capital outflow and negative net exports. c. negative net capital outflow and…

A: The GDP is the all out of all worth added made in an economy. The worth added implies the worth of…

Q: If a country is experiencing a budget deficit and the government reduced spending, resulting in a…

A: The process of budgeting where the total planning spending is equal to total expected revenues is…