What is the result of investments?

Q: Distinguish the final goods or services, intermediate goods or services, and capital goods?

A: Intermediate goods are defined as those goods which are a part of the final good as they have been…

Q: What is the relationship between income and consumption?

A: The income is the money wage earned by the individual for providing the service of the labor in the…

Q: Explain the difference between the stock variable and a flow variable in economics with one example…

A: According to the given question While analysing in general the economic problems the economics uses…

Q: Define the term Net Investment?

A: Investment: In economics, the term investment refers to the purchase of commodities that will be…

Q: What is the value of Consumption (C)?

A: Since the question you have posted consists of multiple parts, we will answer the first three parts…

Q: What does the net investment test indicate?

A: Net investment is the net amount of money a business spends on capital assets, minus the…

Q: Define the term Net Income?

A: The monetary benefit or reward earned by an individual or business by producing goods or services,…

Q: What is Adam Smith’s view on “accumulation of wealth”?   What does he say “must be done with the…

A: According to adam smith, the needs of an individual lead to a self-interest behavior that creates…

Q: Show how consumption and savings evolve in an economy that starts with a level of capital well above…

A: Solow Growth Model is defined as a model which solely focuses on economic growth of a nation in the…

Q: What might the impact of a flat world be on your standard of living?

A: When talking about flat world, it refers to the changing scenario of markets of different nations…

Q: how to find gross investment in the economy? is it correct if i add Net investment to Capital…

A: Investment: The term investment refers to the increase in the stock of capital. Here, capital is…

Q: YAt right is a simplified circular-flow diagram for the economy of Micronia. (Note that there is no…

A: We are going to find the disposable income, Gross domestic product to answer this question.

Q: What is meant by the rate of interest. How is the rate of interest determined? Explain in 500 words.

A: The interest rate represents the cost of money to a borrower and the return on invested money to an…

Q: Use the diagram below to answer the questions that follow. V J CONSUMER GOODS CAPITAL GOODS

A: The production possibilities frontier (PPF) is a basic production economic model used to outline how…

Q: A small economy starts the year with $1 million in capital. During the course of the year, gross…

A: The economy has a capital equal to $ 1 million, an investment equal to $ 150,000 and depreciation…

Q: What are the keyword that contrast savings and investment?

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: What is meant by the cost of living? Describe the cost of living in the state of New Jersey.

A: Cost of living can be explained as the money required for the expenses incurred on the basic…

Q: Explain how higher savings leads to a higher standard of living.

A: The savings is the money that people keep with them without spending for their consumption purpose.…

Q: Is the purchase of equipment or machinery a part of consumption or investment?

A: Economics is the study of how the scarce resources of society are exploited. Economics is a social…

Q: Can a borrower become a saver?

A: The borrower can become a saver which is explained through the intertemporal budget constraint. The…

Q: What are the implications of inequality between saving and investment in an economy?

A: Saving: It refers to the amount of money that is not being used by the people. The people will save…

Q: What is the Net-investment test?

A: Net- investment measures the company's assets and investment like property, software, plants and…

Q: What are the three successive stages or phases in the circular flow of income

A: According to the given question Actually circular flow of income is an income which is represented…

Q: Is the purchase of equipment or machinery a part of consumption or investment? Why?

A: The concept of allocation of money with having an expectation in the future of a positive return or…

Q: Optimizing economic agents use the real interest rate when thinking about the economic costs and…

A:

Q: A consumer, who is initially a lender, remains a lender even after a decline in interest rates. Is…

A: Microeconomics is a part of economics that is used to understand how resources can be allocated in…

Q: Which of the following is true of saving and investment? a.Saving and investment can never be…

A: a.Saving and investment can never be undertaken together by the same person. This statement is…

Q: Calculate income if consumption is $120 million and Savings is $66 million.

A: Given data: Consumption is $120 million. Saving is $66 million.

Q: Define the term Return on Investment?

A: Return on investment measures the performance which is used to evaluate the efficiency of an…

Q: Investment in everyday life is: a. The purchase of goods and services b. The purchase of capital…

A: An asset bought or invested in to grow wealth and save money through hard-earned income or…

Q: Looking at business fixed investment, explain why investment is negatively related to the interest…

A: An asset or object purchased with the intention of producing income or appreciation is referred to…

Q: What would be the value of sales given that value of output is $31,000 and changs in stock is…

A: The data presented in the question above is:- Value of output = $31,000 Change in stock = $10,000 We…

Q: Calculate income if consumption is $120 million and Savings is $66 million

A: The information being provided to us is as follows:- Consumption = $120 million Saving = $66 million…

Q: How Goods Market will be in Equilibrium according to the saving and investment approach?

A: Aggregate demand is the value of the total goods and services demanded by the whole economy in a…

Q: What is the value of total gross investment?

A: Total investment is an important component in the calculation of gross domestic product. Total gross…

Q: A closed economy has income of $1000, government spending of $200, taxes of $150, and investment of…

A: A closed economy is a type of economy in which the trading of goods and services won’t happen with…

Q: If savings are at $1300 and income is worth $2200, what would the value of consumption be

A: According to neoclassical economists, ingestion serves as the ultimate goal of economic activity; as…

Q: If the MPC is .75 and disposable income is $100, then

A: Marginal Propensity to Consume ( MPC) refers to the increment in one's consumption expenditure when…

Q: Describe the process of Calculating Present Value?

A: PV formula  Present value = Future value/ (1+r)n r= rate of return n = number of periods

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.