importance of stock market

Q: Define the term Net Investment?

A: Investment: In economics, the term investment refers to the purchase of commodities that will be…

Q: Define the concept of rate of return on investment?

A: Rate of return on investment measures the net gain or loss of an investment over a period of time.…

Q: Explain the importance of circular flow of income in an economy...

A: According to the given question Circular flow of income is considered as an simple concept in…

Q: circular flow model

A: The circular flow of income in economics is a model which shows the flows of goods, services, and…

Q: What is investment? How is it related to national saving?

A: Investment refers to an action of purchasing assets or goods that are not consumed in the present…

Q: What is the value of Consumption (C)?

A: Since the question you have posted consists of multiple parts, we will answer the first three parts…

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

A: Private savings, is the amount that the economy saves. Total Savings comprises two types of savings,…

Q: Graph the market for loanable funds such that current national saving is at a level of $500 million…

A: In market for loanable funds, equilibrium occurs where quantity of loanable funds demanded is equal…

Q: explain the impact of a low interest rate on gross domestic product(not less than a page)

A: We can determine the impact of low interest rate on gross domestic product by taking IS-LM model. IS…

Q: Equation for finding the steady state of equilibrium for investment

A: The Solow Growth Model is an exogenous economic growth model that examines changes in an economy's…

Q: If personal taxes are $400 billion and disposable income is $4,000 billion, then what does personal…

A: Hi, thanks for the question. As per the guidelines we are allowed to attempt the first question. If…

Q: The GDP of an economy is $1,000. We have other data as well: consumption = $600, taxes = $100, and…

A:

Q: Represent the following data by a suitable diagram: Items of Expenditure Family A (Income 500)…

A: Given  Items of expenditure Family A (income 300) Family B (income 300) Food 150 150 Clothing…

Q: YAt right is a simplified circular-flow diagram for the economy of Micronia. (Note that there is no…

A: We are going to find the disposable income, Gross domestic product to answer this question.

Q: If personal taxes are 400 billion and disposable income is 4,000 billion, then what does personal…

A: Meaning of Disposable Income: The term disposable income also refers to net income or disposable…

Q: A closed economy has income of $1,000, government spending of $200, taxes of $150,and investment of…

A: "Savings refers to the process of setting aside some part of income for future use." Individuals may…

Q: A small economy starts the year with $1 million in capital. During the course of the year, gross…

A: The economy has a capital equal to $ 1 million, an investment equal to $ 150,000 and depreciation…

Q: Explain how higher saving leads to a higher standard of living.

A: In neo classical economics it is assumed that saving is equal to the investment and an economy is at…

Q: Classify each of the given events according to the category that best describes how it affects the…

A: Increase the interest rate: An increase in the large investments: the new equilibrium point will be…

Q: Describe the four measures taken for investment?

A: Investment refers to the addition or acquisition of assets with the goal of making income or profit.

Q: What is Capital expenditure?

A: Capital expenditure refers to expenditure made by the firms in tangible assets such as land,…

Q: what is relationship between saving , capital formation and consuption ?

A: Capital formation is given by the amount of investment. In a closed economy without Government…

Q: Can a borrower become a saver?

A: The borrower can become a saver which is explained through the intertemporal budget constraint. The…

Q: What are the implications of inequality between saving and investment in an economy?

A: Saving: It refers to the amount of money that is not being used by the people. The people will save…

Q: Q1. Consider the following data on hypothetical economy. GDP Gross Investment Net Investment…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: suppose that in a closed economy GDP is equal to 22,000, taxes are equal to 7000, consumption is…

A: Given, GDP (Y) = 22,000 Taxes (T) = 7000 Consumption (C) = 13,000 Government expenditure (G) = 4000

Q: Calculate income if consumption is $120 million and Savings is $66 million.

A: Given data: Consumption is $120 million. Saving is $66 million.

Q: What does disposable income measure? the income households have from investment income such as…

A: Depending on the usual specifics of the situation like the purposes of taxes, financial accounting,…

Q: Investment in everyday life is: a. The purchase of goods and services b. The purchase of capital…

A: An asset bought or invested in to grow wealth and save money through hard-earned income or…

Q: What is the result of investments?

A: The amount of products purchased or accumulated per unit of time that are not utilised at the…

Q: Draw a diagram showing circular flow of national income. Explain it in detail?

A: The circular flow of money explains how money and goods are circulated between the household sector…

Q: What is true about equilibrium in the market for loanable funds?   A.   Savings = gross domestic…

A: Market equilibrium of any things whether goods Markets or money market or Loanable funds market the…

Q: Complete the following table by using national income accounting identities to calculate private and…

A: Consumption, investment and government expenditure are components of GDP in a closed economy.

Q: 6) Use the figure below to answer this question. Interest Rate (%) 12 10 Loanable Funds (in billions…

A:

Q: What is the value of total gross investment?

A: Total investment is an important component in the calculation of gross domestic product. Total gross…

Q: A closed economy has income of $1000, government spending of $200, taxes of $150, and investment of…

A: A closed economy is a type of economy in which the trading of goods and services won’t happen with…

Q: What is the price of funds in the loanable funds market? a. the Consumer Price Index b. the real…

A: Loanable funds market shows supply and demand for loanable funds. It shows how much funds are…

Q: How do you calculate private closed economy GDP?

A: A closed economy represents a market system where no trade with other countries take place.

Q: Define private saving, public saving and national saving. How are they related?

A: Savings is the income which is not spent on the consumption and saved for future consumption.