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Question 3 a. In a closed economy, GDP is $195,000, consumption is $120,000, private saving amounts to $48,600 and the government is currently running a budget deficit of $18,600. Compute the level of taxes, public saving, government spending, national saving and investment. b. In the era of Covid-19 pandemic, producers are worried about the returns of capital and decide to reduce their investments, use a well-labelled diagram to illustrate and analyze the impacts on the equilibrium interest rate and quantity of loanable funds?

Question 3 a. In a closed economy, GDP is $195,000, consumption is $120,000, private saving amounts to $48,600 and the government is currently running a budget deficit of $18,600. Compute the level of taxes, public saving, government spending, national saving and investment. b. In the era of Covid-19 pandemic, producers are worried about the returns of capital and decide to reduce their investments, use a well-labelled diagram to illustrate and analyze the impacts on the equilibrium interest rate and quantity of loanable funds?

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Savings,investment And The Financial System
Section: Chapter Questions
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Question 3 a. In a closed economy, GDP is $195,000, consumption is $120,000, private saving amounts to $48,600 and the government is currently running a budget deficit of $18,600. Compute the level of taxes, public saving, government spending, national saving and investment. b. In the era of Covid-19 pandemic, producers are worried about the returns of capital and decide to reduce their investments, use a well-labelled diagram to illustrate and analyze the impacts on the equilibrium interest rate and quantity of loanable funds?
Transcribed Image Text:Question 3 a. In a closed economy, GDP is $195,000, consumption is $120,000, private saving amounts to $48,600 and the government is currently running a budget deficit of $18,600. Compute the level of taxes, public saving, government spending, national saving and investment. b. In the era of Covid-19 pandemic, producers are worried about the returns of capital and decide to reduce their investments, use a well-labelled diagram to illustrate and analyze the impacts on the equilibrium interest rate and quantity of loanable funds?
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