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During his first term, President Obama has increased government spending and cut taxes.
For each variable state if it will INCREASE, DECREASE, or REMAIN UNCHANGED. In at least one complete sentence state WHY this change will occur. Be specific.
- Private Saving (Sp):
- Consumption: (C)
- Government Saving (Sg)
- Total Saving: (S)
- Real Interest Rates: (r)
- Investment: (I)
11. Private Saving: if the private saving of the people increases the consumer will able to spend less because they will save more money rather than spending it. This change will occur when the government increase its spending in the economy leads to increase the expenditure on public leads to more saving of the people.
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- You are given the following information: Consumption of goods and services $1,250 Gross business investment 350 Government expenditure 400 Depreciation 100 Indirect business taxes 25 Corporate retained earnings 150 Corporate taxes 95 Personal taxes 250 Determine: Gross National Product. Net National Product. National Income. Personal Income. Disposable Income. Personal saving. Business saving. Government saving. i. National saving. Show that national saving equals gross business…Refer to Figure 26-1. What is measured along the vertical axis of the graph? a. The tax rate b. The interest rate c. The quantity of investment d. The quantity of savingWhich of the following is not included in personal consumption expenditures? Group of answer choices 1. Purchases of existing shares by consumers in the stock market 2. Food purchased at supermarkets 3. Payments for cable and Internet services to homes 4. New furniture and appliances bought by homeowners
- Soon after his election in 1992, President Clinton proposed reducing government spending and increasing taxes For each variable state if it will INCREASE, DECREASE or REMAIN UNCHANGED. In at least one complete sentence state WHY this change will occur. Be specific. Private Saving (Sp): Consumption: (C) Government Saving (Sg) Total Saving: (S) Real Interest Rates: (r) Investment: (I)Which of the following should NOT be considered as partof fixed investment?1. Toyota buys a new robot for its automobile assembly line.2. Apple computer builds a new factory.3. Exxon increases its holding of bonds and stocks infinancial markets.4. An accountant buys a newly built home for herself and her family.5. None of the above.Which of the following is included in Investment (I)? the amount spent on new factories and machinery the amount spent on stocks and bonds the amount spent on consumer goods that last more than a year the amount spent on purchases of art
- The financial markets play an important role in channeling funds from savers to borrowers. Which of the following illustartes this function of financial market? A) Investors purchase assets like real estate and gold from other investors B) Investors purchase securities that are issued by firms and government C) Investors deposit funds into interest bearing accounts which are then loaned to borrowers D) Investors purchase capital goods which are used in production by borrowersEconomists from Funlandia have collected the following information about the economy (all measured in billions of bucks): Y = 12, C= 9, T = 2, and G = 2.5. The economists also estimate the investment function is I = 2 – 0.5r where r is the country’s real interest rate expressed as a percentage. Calculate private saving, public saving, national saving, investment, and the real interest rate.1. Investment is a determining factor of GDP. A decrease in the supply of available funds (i.e. a decrease in the supply of savings) is predicted to? a. Decrease interest rates, decrease investment towards physical capital and hence decrease GDP. b. Increase interest rates, increase investment towards physical capital and hence decrease GDP. c. Decrease interest rates, decrease investment towards physical capital and hence increase GDP. d. Increase interest rates, decrease investment towards physical capital and hence decrease GDP.
- Final goods include only those goods which are consumed by the household True/Falsein 2019 fiscal year estimated that Ghanaians saved 20 percent of their disposable income; however, due to overconsumption in the previous year, autonomous saving for 2019 was negative 100 million Ghana cedis. The government of Ghana imposed a lump sum tax of Gh ₡ 20 million. In addition to the lump sum tax the government also took 20 percent of all incomesearned in the economy in the form of proportional tax. The total government expenditure was GH ₡50 million in 2019. Total investment recorded for 2019 was 66 million. (A) Determine the tax function for this economy, derive the consumption function based on the above information and write out the aggregate demand equation (b) Determine the equilibrium consumption and calculate the value of the government expenditure multiplier for this economy and interpret your result (c) Calculate the total tax revenue to the governmentEquation for finding the steady state of equilibrium for investment
