Write out the equation for desired national savings. What changes to desired national saving and desired national consumption happen when government spending increases, funded by an increase in taxes? Why does consumption change by less than G?
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Write out the equation for desired national savings. What changes
to desired national saving and desired national consumption happen when
government spending increases, funded by an increase in taxes? Why does
consumption change by less than G?
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Solved in 4 steps
- dont use chatgpt answer urgent What would result from a decrease in the supply of national savings curve? a). an increase in the dollar amount of savings b). an increase in real interest rates c ).an increase in the dollar amount of investment d). a decrease in real interest ratesQuestion Need help calculating this one. Please show all work. Hints: Equilibrium Condition is S=I. If economy is open r=r*. Assume that in a small open economy where full employment always prevails, national saving is 300. a. If domestic investment is given by I = 400 – 20r, where r is the real interest rate in percent, what would the equilibrium interest rate be if the economy were closed? b. If the economy is open and the world interest rate is 10 percent, what will investment be? c. What will the current account surplus or deficit be? What will net capital outflow be? Assume that in a small open economy where full employment always prevails, national saving is 300. a. If domestic investment is given by I = 400 – 20r, where r is the real interest rate in percent, what would the equilibrium interest rate be if the economy were closed? b. If the economy is open and the world interest rate is 10 percent, what will…Consider the following data (in billion $) for a country in a particular year: (assume this country has Zero Transfer Payment Personal consumption expenditure (C) 200 Exports (x) 10 Government Purchases of goods and services (G) 120 Imports (m) 15 Gross Domestic Product (Y) 1800 Taxes 20 d. What is the value of gross investment? e. What is the value of net export? f. Is the country lending to or borrowing from rest of the world? g. Dose the government has deficit, balance or surplus budget? h. What is the amount of investment financed by national saving? i. What is the amount of investment financed by borrowing from rest of the world? J. What is the meaning of transfer payment
- For the first three questions, please consider a closed economy with the following information (and no transfer payments): Government purchases = $30,000Output (income) = $300,000Taxes = $20,000Total savings = $100,000Calculate this economy's public savings. Enter only numbers, a decimal point, and/or a negative sign as needed. Round your answer to two decimal places as necessary.If Y (the output level) = $2 billions, consumption = $1 billion , and government purchases = $0.8 billion, how much is saving and investment at equilibrium in a closed economy? Select one: a. saving = $0.2 billion, investment = $0.2 billion and net exports = 0 billion b. saving = $0.1 billion, investment = $0.1 billion and net exports = 0.1 billion c. saving = $0.1 billion, investment = $0.2 billion and net exports = 0 billion d. saving = $0.1 billion, investment = $0.1 billion and net exports = 0 billionImagine that the U.S. economy finds itself in the followingsituation:agovernmentbudgetdeficitof$100 billion, total domestic savings of $1,500 billion, and total domestic physical capital investment of $1,600 billion.Accordingtothenationalsavingandinvestment identity,whatwillbethecurrentaccountbalance?What willbethecurrentaccountbalanceifinvestmentrisesby $50billion,whilethebudgetdeficitandnationalsavings remain the same?
- Suppose that we’re in an open economy with this situation: - C = $85.890 - I = $125.000 - G = $56.700 - X = $65.000 - M = $55.000 - T = $60.000 Calculate GDP, national saving, private saving, and public saving. Does it has budget deficit or budget surplus?Please no written by hand solutions Currently, the U.S. has a total consumption of $21,300,000, savings of $9,700,000, government spending of $8,800,000, and investment of $6,800,000. Calculate the size of this government's budget deficit assuming net exports = net imports. $ Provide your answer as a whole number. Typed numeric answer will be automatically saved.Q. 1: Consider an economy described as follows:Y = C + I + GY= 8000G = 2500T = 2000C = 1000 + 2/3 (Y – T)I = 1200 – 100ra. Compute public savings, private savings and national savings for this economy.b. Find the equilibrium interest rate.c. Now, suppose that T increased by 500, compute public savings, private savings and national savings for this economy.d. What happens to new equilibrium interest rate.
- The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,680 million. Enter the amount for investment. National Income Account Value (Millions of dollars) Government Purchases (GG) 400 Taxes minus Transfer Payments (TT) 360 Consumption (CC) 1,000 Investment (II) Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S)National Saving (S) = = = = million Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private SavingPrivate Saving = = = = million Public SavingPublic Saving = = = = million Based on your calculations,…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: Government Spending and National SavingsConsider an economy described by the following equations: Y = C + I + G AND, Y = 20,000; G = 4,000; T = 4,000; C = 1000 + 0.80(Y − T); : I= 2,500 – 120r. national saving AND the equilibrium real interest rate equal: Select one: a. national saving 2200 AND the equilibrium real interest rate 2.5%. b. national saving 2500,AND the equilibrium real interest rate 2%. c. national saving 4000 AND the equilibrium real interest rate 1.5%. d. national saving 3200 AND the equilibrium real interest rate 2.5%.
