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A: The above given statement is explained as follows:
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A: C=300+0.75Y I=100 G=100 X=M=T=0
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true/false explain
- When savings equals investment, reducing savings and increasing consumption is especially effective in stimulating output.
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- Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, andpublic saving is 0.2 billion. Assuming the economy is closed, calculate the size of:Consumption and InvestmentExplain and compare the following terms: Saving intensity and break-even investment intensity.Suppose an economy’s steady-state investment rate I/Y is 30 percentwhen the corporate tax rate is zero. What happens to this investmentrate if the corporate tax rate rises to 20 percent? 30 percent?
- Define the term Projected annual net savings?Formula for open economy multiplierarrow_forward Question Asked Aug 18, 2020 25 views Consider the following model of an economy operating with fixed wages, prices and interest rates and hasexcess capacity. Adsume all figures are I Zambian kwacha. C=100+0.8yd, T=100+25Y, G=980 and I= 500 Where c is consumption, yd is disposable income, T is taxes net of transformers, G is government spending on goods and services and I is investments. Is the government running a surplus or deficit Show the impact of a reduction in government spending by 80 on the equilibrium level of national income Illustrate your new equilibrium in the same Keynesian cross diagram
- There is recently an increase in private saving in Canada. Assume this occured by a drop in autonomous consumption. What happens to a. investment? up, down, stay the same b. national savings? up, down, stay the same c. public savings? up, down, stay the same2In a country where the consumption function is C= 100+0.75Y, the planned investments are 100 units. If the planned investments are increased from 100 units to 200 units, how much will the balance output level change? Please select one: a. 200 b. 100 c. 250 d. 400 e. 50True/False and Explain An increase in savings implies a decrease in consumption and therefore a decrease in GDP.
- If household saving decreases by $4 million, business saving increases by $4 million, and the government budget deficit decreases by $4 million, then private saving ______ and public saving ______. Select one: a. increases; increases b. increases; decreases c. does not change; increases d. does not change; decreases..... expl whySuppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, andpublic saving is 0.2 billion. Assuming the economy is closed, calculate the size of: Government Spending and National SavingsQUESTION 14For an open economy, which of the following expressions represents private saving (S)? investment plus tax revenues less government expenditure plus net exports, I + T – G + NXI + T – G – NXI + G + NXG – T + NX – In one of the above