Savings S = 150 Investment I  = 100 Taxes T = 250 Government Purchases G = 500   Compute the level of private savings, public savings, and national savings.

Q: Suppose that national income is unchanged, taxes decrease, consumption remains the same, and…

A: There is inverse relationship between output and interest rate in IS curve model.

Q: Consider the following closed economy, which we shall call Gazzalestan. C=50+4/5 X YD. I=2400 G=1100…

A: Given information: C = 50 + (4/5)*YD -------------> Consumption function I = 2400…

Q: Q.1.1 In the circular flow of income and spending: (1) Investment results in a decrease in the…

A: Desclaimer :- As you posted a multipart questions by default we are supposed to solve only the first…

Q: If MPC=0.75 (and there are no income taxes) and if government purchases fall by 45, then the IS…

A: Given information MPC=0.75 Government falls by 40

Q: f the consumption function is C= 800 +0.6(Y-T), output, Y = $4,600 and net taxes, T, = $100, then…

A: here we calculate the consumption by using the consumption function so the calculation of the…

Q: Suppose the government decides to buy government bonds.  Will interest rates increase, decrease, or…

A: We have found suppose the government decides to buy government bond.

Q: ustify your answer: [Assume households either consume or save their income only.] a)If the private…

A: National income accounting is a government accounting system that monitors a country's economic…

Q: 2. Categorize each flow in the following table as either an injection into the circular flow or a…

A: We will solve the first three subparts only. Please resubmit the question with any other parts you'd…

Q: Which of the following is NOT a leakage from the circular flow of income? a. Imports. b. Saving. c.…

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Q: Historically, which of the following are reasons that a large US public debt might not threaten to…

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Q: If investment and consumption expenditures fall and cause GDP to fall, what is an appropriate fiscal…

A: Fiscal policy is implemented by the government in the form of change in taxes and spending. Monetary…

Q: Which of the following is a category of fiscal policy?A) government policies regarding transfer…

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Q: Suppose the economy is in a recession, which of the following fiscal policy can the government use…

A: A recession is a macroeconomic word for a large drop in overall economic activity in a certain area.…

Q: Assume i=0%, beta=1. Consumer has income of 80 in year 1, 100 in year 2. Now suppose gov't gives…

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Q: the advantages and disadvantages of a weak dollar bill (3 of each)

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Q: f the current real GDP is P700 billion, which of the following policies would bring the economy to…

A: MPC = 0.8 => Government spending multiplier = 1 / (1-MPC) => Government spending multiplier =…

Q: Refer to the information provided in Table below to answer the question that follow. All Numbers are…

A: Aggregate expenditure = Consumption spending + Investment spending + Government spending

Q: Suppose the government borrows $20 million more next year than this year. a. Draw and fully label a…

A: A) fully labeled diagram?? B) rate of interest rise or fall ?

Q: In 2008, the government increased its debt by $50 billion and it received $300 billion in revenue.…

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Q: How are changes in the country’s internal balance likely to have affected government tax revenue and…

A: Gross domestic product (GDP) is the total value of all the goods and services produced in the…

Q: Aggregate demand (AD) is A,B,C, OR D A total spending, economy-wide, on durable goods and services.…

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Q: Which of the following policies does not make any economic sense? Group of answer choices lowering…

A: A boom refers to a time of increased economic activity within a sector, a corporation, an industry,…

Q: Which of the following is carried out in an expansionary fiscal policy? a. Higher taxes and higher…

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Q: How do the instances when expansionary fiscal policy should be used compare with those for…

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Q: The tax multiplier is always more effective in stimulating the economy than government multiplier…

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Q: If net taxes fall by $80 billion, we would expect  the government deficit to fall by $80 billion.…

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Q: Suppose that we were in a situation where the interest elasticity of investment is high, and money…

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Q: In the presence of reduced consumer confidence, the government can: (Click to select) decrease…

A: Aggregate demand is a sum of consumption spending, investment, government spending and net exports.

Q: Flow Injection Leakage Saving (S) Net taxes (NT) Exports (X) Investment spending (I) Government…

A: Injection in circular flow cause increase in income in flow . It includes Introduction of income.…

Q: Which of the following is an appropriate fiscal policy response to a negative GDP gap?   a. raise…

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Q: Assuming a constant money supply, government expenditures can be financed by which of the following?…

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Q: Question ONE (a). Briefly discuss the following concepts ii. . iii. Monetary neutrality iv.…

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Q: Given a full employment level of GDP of 700 Trillion and a current level of 670 Trillion the…

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Q: The components of aggregate demand are: The components of aggregate demand are:       A.…

A: Aggregate demand is the sum of consumption, investment, net government expenditure, and net export.

Q: Please answer the question below: If the current real GDP is P700 billion, which of the following…

A: MPC = 0.8 Potential output = P800 billion Real GDP = P700 billion

Q: Some liken quantitative easing to that of directing a firehose of money to emerging economies that…

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Q: Prove that Sp=B implies Y=C+G, where, Sp=Quantity of private savings B=Quantity of debt issued by…

A: The national income is the sum of consumption of consumption and government expenditure. The income…

Q: Identify the correct equation from the following equations: Disposable income equals national income…

A: National income refers to the value of products and services manufactured by a nation during a…

Q: Crowding out occurs when   Question 25 options:   increased money supply causes private…

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Q: Suppose in our two-period model of the economy that the government, instead of borrowing in the…

A: Budget constraints can be defined as all the combination of goods and services that the customers…

Q: Examine the following policies and determine which would decrease the level of aggregate demand.…

A: Answer to the question is as follows:

Q: Describe the volatility of government spending and net exports relative to that of GDP and suggest…

A: The components of the GDP here, that is the government spending & the exports of goods &…

Q: Which best describes why the multiplier exists? When people spend money, that money ends up in the…

A: Multiplier is an economic term which shows that an input widens the effect of other variables.

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.