Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971509
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 13, Problem 4QR
To determine
The Investment and its relation to National savings in a closed economy.
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What is an investment? How is it related to national saving? Write the National Income
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What is investment? How is it related to nationalsaving in a closed economy?
Chapter 13 Solutions
Principles of Macroeconomics (MindTap Course List)
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- how do you solve national savingarrow_forwardIn an open economy, gross domestic product equals $2,450 billion, consumption expenditure equals $1,390 billion, government expenditure equals $325 billion, investment equals $510 billion, and net capital outflow equals $225 billion. What is national saving?arrow_forwardWhat is the saving and investment equation? If national saving declines what will happen to domestic investment and net foreign investment?arrow_forward
- Briefly explain what a change in any part of the national saving and investment identity points out.arrow_forwardEconomics Consider the following data for country B, an open economy, for this year: Y = $14 trillion C = $6 trillion G = $2 trillion NX = $3 trillion T = $4 trillion TR = $0.5 trillion a) Find country B’s domestic investment. b) Find country B’s private saving. c) Find country B’s public saving. d) Find country A’s national saving. e) Find country B’s net foreign investmentarrow_forwardIn a closed economy, if Y and T remained the same, but G rose, and C fell but by less than the rise in G, what would happen to public and national saving? a. public and national saving would rise b. public saving would fall and national saving would rise c. public saving would rise and national saving would fall d. public and national saving would fallarrow_forward
- What do you understand by the term “closed economy”? For a closed economy show, National savings = National Investmentarrow_forwardIn an open economy, it is impossible to have national saving equal to domestic investment.Answer true, false, or uncertain. Please briefly explain your answer.arrow_forwardConsider country A, which is a closed economy. Suppose that A’s private saving is 280 and investment is 250. What is the public saving? Consider country B, which is a closed economy. B’s private saving is 500, its government spending is 100, budget deficit is 50, consumption is 1000. what is the B’s investment and the disposable income, Y – T (Y is the total income, T is tax revenue)?arrow_forward
- Most of the investment decisions in the U.S. economy are made by a. consumers. b. governmental institutions. c. businesses. d. international financial agencies.arrow_forwardDifferentiate between a closed economy and an open economyarrow_forwardIf Investment=f(r*) a. Explain with pictures how it affects the balance of Supply/Saving and Investment Demand if it increases investment demand abroadarrow_forward
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