Why is there a trade-off between the amount of consumption that people can enjoy today and the amount of consumption that they can enjoy in the future? Why can’t people enjoy more of both? How does saving relate to investment and thus to economic growth? What role do banks and other fifinancial institutions play in aiding the growth process?

Q: Suppose that consumption grows continuously. How many years will it take for consumption to increase…

A:

Q: GDP

A: GDP is final value of godds and services produces within the geographic boundaries of a country…

Q: Discuss the argument that the financial system plays an important role in mitigating the volatility…

A: A financial system is the system of regional,global,  or firm-specific institutions and practices…

Q: Consider a nation in which the volume of goods and services is growing by 5 percent per year. What…

A: Gross domestic product is the most intently viewed and significant monetary pointer for the two…

Q: Identify each of the following topics as being part of microeconomics or macroeconomics: d.​factors…

A: The study of economics deals with how scarce resources are allocated in a manner that most of the…

Q: Suppose the savings rate suddenly decreases. We can assume that real growth will _____ in the…

A: if the savings rate suddenly decreases. we can assume the real growth will be constant in the short…

Q: “The Sollow model shows that the saving rate does not affect the growth rate in the long-run, so we…

A: The saving rate is the rate that measures the amount of money in percentage that is saved by the…

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

A: In neo classical economics it is assumed that saving is equal to the investment and an economy is at…

Q: 4.2 If real GDP per capita doubles between 2005 and 2020, what is the average annual growth rate of…

A: Real GDP per capita is the measurement of national income adjusted to inflation, it shows the…

Q: Because of a threat of a war, people become uncertain about their economic future. The overall level…

A: The supply(SS) and demand(DD) curves shifts when there is an exogenous change. That is, when…

Q: “An increase in a country's population is likely to raise the real interest rate.

A: The IS curve represents the equilibrium in the goods market. The equilibrium in goods market is…

Q: Discuss five ways which the country can do to increase its savings rate.

A: The savings is defined as the amount of income that is not paid in taxes to the government or not…

Q: At 1% interest rate, how much should you invest today to be able to withdraw ₱ 3,053 annually for 8…

A: 1% interest rate is given monthly , where he withdraw 3053 annually for 8years . And payment is done…

Q: Using the concepts of real interest rate and expected rate of return, test the relationship between…

A: The link between saving and investment is a major source of disagreement in macroeconomics. Before…

Q: Why is it important to begin saving for the future at a young age? o to make it so you can blow all…

A: Savings is that part of income which is not consumed and kept aside for use in the future.

Q: how money contributes to economic growth and\or development? If there is no money will society find…

A: Economic Development is the growth of real factors of production such as capital, labor, technology,…

Q: Why is well-functioning financial system is a critical ingredient in achieving long-run growth? It…

A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…

Q: Which of the following situations represent saving?

A: Savings is the money left after all the consumption expenditure. It can be deposit in various types…

Q: Why would removing a trade restriction, such as a tariff, lead to more rapid economic growth?…

A: Since posted multiple questions , we will answer only first one.

Q: According to the loanable funds model, decreasing the amount of saving and increasing the amount of…

A: A loanable funds market is the place where people interact to make an exchange of funds that are…

Q: what explains the long-term differences in growth and thus present-day differences in levels of real…

A: Long term growth is measured in terms of  1. Per capita 2. GDP

Q: Compare and contrast stock market activity in October 1929, October 1987 and late summer 1998. What…

A: The stock market crash of 1929 was the collapse of the stock prices, for four consecutive ways. It…

Q: The long-run effects of an increase in the saving rate include...? a. a higher level of…

A: We assume that the factors of production have diminishing returns to scale. So if the savings rate…

Q: Suppose the people in a certain economy decide to stop saving and instead use all their income for…

A: Savings are defined as the money that a person has left over after they spend part of the income on…

Q: briefly discuss break even investment

A: Break even point refers to the point where investment starts making positive return.

Q: Discuss why financial markets are important to a healthy economy and how they contribute to economic…

A: A business is a part of an economic system that has 2 main sectors- households that saves funds and…

Q: Assume that a country experiences a permanent increase in its saving rate. Which of the following…

A: A permanent increase in savings rate could impact various variables in the economy for long or short…

Q: Explain three types of capital receipts in an given economy?

A: In simple words we can say that the capital receipts are known as that receipts in which the…

Q: Suppose the savings rate suddenly decreases. We can assume that real growth will _____ in the…

A: When a war starts and a considerable amount of the nation's capital stocks has been devastated, the…

Q: our two younger brothers both looked at your notes and thought the answer to the question “what…

A: Consumption: Utilization is the demonstration of utilizing assets to fulfill current requirements…

Q: Explain how avoiding interest rate hikes could assist in accelerating economic growth

A: Economic growth is a rise within the production of products and services in an economy. Will…

Q: Explain Three ways that a reduced rate of interest influences real capital investment.

A: Answer - Need to find- Explain Three ways that a reduced rate of interest influences real capital…

Q: Which growth theory sees the economy as a perpetual motion machine? sees the economy as a perpetual…

A: Growth is a vital part of economics and various growth theories are developed by economists.

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.