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In the long run, what happens to consumption, investment, and the interest rate when the government increases taxes in a closed economy?
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- In the long run, what happens to investment, and the interest rate when the government increases taxes in a closed economy?In the long run, what happens to consumption, investment, and the interest ratewhen the government increases taxes in a closed economy? explainIf the central bank of every economy in the world lowers its interest rate, will economic activity in all these economies be boosted?
- Consider a closed economy without a government. If the GDP of the economy is $63,000 and the consumption in the economy is $45,000, the saving rate in the economy is ________. 86 percent 24 percent 57 percent 75 percentHow will you differentiate an open economy from a closed economy? Explain with the help of an example.consider the following hypothetical economy. The economy is closed, meaning the economy neither exports or imports. And the economy national saving us 20 trillion and government expenditure is 5 trillion. What is the level of investment
- In your opinion which economy is better. A closed economy or an open economy. Explain?How does investment as defined by economists differ from investment as defined by the general public?What happens in a private closed economy when aggregate expenditures exceed GDP? a. GDP will decline b. Business inventories will rise c. Saving will decline d. Business inventories will fall
- Please provide examples of what is an emerging economy and its definition?Q.2.2 Briefly analyse the difference between a closed economy and an open economy.Briefly explain whether investment spending is likely to increase more rapidly in a country with a rapidly growing population or in a country with a slowly growing population. Does your answer depend on whether the country is a high-income industrial country or a low-income developing country?
