Suppose the government must increase taxes in order to increase spending.  Now assume Congress wants to increase spending on education without decreasing spending somewhere else.    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)

Q: Saving equals O A. income minus net taxes B. total income minus total expenditure C. net taxes minus…

A: As we know that income is divided between two segments one is consumption and another one is saving.…

Q: Suppose the value of corn a household produces is the equivalent of 60 percent of its income and the…

A: The total amount sold is the total sales of the company subject to its return, benefits, and…

Q: Refer to Figure 8.3. For this society, aggregate saving is positive if aggregate income is .above…

A: For this type of society the aggregate savings will be positive when the aggregate income is above…

Q: The gross domestic product (GDP) of Country A is $2 trillion in year 1. What value of investment…

A: To solve the GDP we will assume average disposable income and consumption in real$

Q: Determine the amount of national income. b. Determine the amount of national consumption. c.…

A: National Income is sum of consumption and investment. Y = C + I, where Y = National Income , C =…

Q: In 2018, Kendall Ford, an automobile dealership, spent $20,000 on a new car lift for its repair…

A: Given the January 1, 2018 is the starting of the year. It has the opening stock in the balance sheet…

Q: The COVID-19 pandemic has caused an unprecedented increase in savings in many countries around the…

A: As a negative effect of COVID -19 economies  have taken a hit on consumer sentiment which directly…

Q: Which of the following should NOT be considered as part of fixed investment? 1. Toyota buys a new…

A: According to the economist investment is such a concept which focuses on the goods production in…

Q: What is the difference between financial investment and economic investment?     1)  There is no…

A: Investment refers to the act of putting money into a project that may serve profits in future.

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 in some year gross investment was $240 billion and net investment was $130 billion, then in that…

A: Gross investment is the expenditure that has been made on the purchase of capital goods. It does not…

Q: Question 6 Standard macroeconomic theory predicts that if firms become more optimistic about future…

A: The branch of economics that deals with studying the overall economy as a whole including economic…

Q: Use the concepts of gross investment and net investment to distinguish between an economy that has a…

A: In the computation of the GDP, the main components that are evaluated are the personal consumption…

Q: Explain what happens to consumption, investment, and the interest rate when the government increases…

A: Increase in taxes is a part of contractionary fiscal policy of government. Consumption and…

Q: gross private domestic investment

A: Gross Domestic Product (GDP) depicts the final hoods and services’ values duration a given duration.…

Q: The financial markets play an important role in channeling funds from savers to borrowers. Which of…

A: Financial market: - it is a market for financial securities where people buy and sell financial…

Q: True/False  An increase in savings implies a decrease in consumption and therefore a decrease in…

A: The function of Income is given by Y= C+S, which means income(Y) is a combination of savings and…

Q: Economists from Funlandia have collected the following information about the economy (all measured…

A: At equilibrium, Y = C+I+G Y = 9+2-0.5r+2.5 12 = 13.5-0.5r -1.5 = 0.5r r = 3% Therefore, real rate of…

Q: When savings equals investment, reducing savings and increasing consumption is especially effective…

A: true there are three things to consider about relationship between savings and economic cycle  1…

Q: Investment (I) includes: O the amount spent on new factories and machinery. the amount spent on…

A: Investment can be defined as any asset acquired or money committed for the purpose of earning future…

Q: Use the two-period model from the Appendix to answer this question. Your current income is 30,000.…

A: Current period income (Y1) = 30000 Current period expenditure (C1) = 24000 next period income (Y2) =…

Q: On January 1, 2016, Sophie's Internet Cafe owned 10 computer terminals valued at $8,000. During…

A: Gross investment is the total amount that the economy spends on new capital, so here we calculate by…

Q: If Net Investment = 0 in a given year, this indicates that we have neither lost nor gained capital.…

A: If Net Investment = 0 in a given year, this indicates that we have neither lost nor gained capital.…

Q: Assume that a national restaurant firm called BBQ builds 15 new restaurants at a cost of $1 million…

A:

Q: Q1: Refer to the information provided in the Table below, answer the questions that follow:…

A: Marginal propensity to consume is the proportion of the disposable income that a person wants to…

Q: Show the effect on the real interest rate and equilibrium quantity of loanable fUkds loanable funds…

A: Loanable funds market is basically a kind of place where borrowing and lending takes place. The…

Q: A futures market trades contracts on the growth rate for nominal GDP. The contract pays $X to the…

A: Given information: A future market trades contracts on the growth rate for nominal GDP. The contract…

Q: explain whether the given statement is true, false or uncertain. Then provide arguments to justify…

A: The saving and the investment function of the economy is certainly important in the case of…

Q: If U.S. government statistics counted education spending as part of the investment, which of the…

A: GDP is the value of all the goods and services produced in the economy in a specific period of time,…

Q: Investment (I) includes: O the amount spent on stocks and bonds. O the amount spent on new factories…

A: expenditure approach: GDP= consumption+investment +government expenditure+net exports

Q: Consumption expenditures Imports Government purchases of goods and services $700 Construction of new…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: What is the relationship between the rising cost of living and low-income communities’ savings in…

A: The cost of living is referred as to the level of price or cost of purchasing goods and services.…

Q: . Explain the difference between public & private saving. 2. Compare & contrast stocks & bonds. .…

A: Loanable funds indicate the availability of an amount that can be loaned out in an economy, at a…

Q: Give a scenario in which nominal GDP increases but real GDP stays the

A: Hi! thanks for the question but as per the guidelines we answer one question a one time. Since you…

Q: In macroeconomics the term investment mostly refers to O businesses' purchases of new buildings and…

A: Macroeconomics is the branch of economics that deals with issues concerning the economy as a whole.

Q: The saving rate (gross domestic saving as a % of GDP) in Australia, a small open economy, was 15% in…

A: Because investment was greater than saving,therefore there was net outflow of capital from…

Q: ______ Is that type of investment which is not affected by change in the level of output or income

A: According to the given question Investment is basically known as the item of the asset which goal in…

Q: An example of a stock variable is A. real GDP. B. consumption expenditure by households. C. gross…

A: Answer is given below

Q: Explain the difference between saving and investment as defined by a macroeconomist

A: According to macroeconomist, Savings refer to excess of income over consumption. This implies…

Q: In 1928, Charles Cobb and Paul Douglas published a study in which they modeled the growth of the US…

A: *Hi there , question contains multiple sub -parts and as per our guidelines we are only allowed to…

Q: The nominal GDP of the U.S. in 2019 was approximately $21.4 trillion. This means that The value of…

A: In nominal GDP, the gross domestic product (GDP) is calculated using current market prices. GDP is…

Q: Describe in why measures of output do not always measure well-being. Include some specific examples.

A: Measures of output include GDP,GDP per capita,GNP etc. Always these measures do not reflect welfare…