EBK ESSENTIALS OF ECONOMICS
8th Edition
ISBN: 8220103599832
Author: Mankiw
Publisher: Cengage Learning US
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Question
Chapter 18, Problem 2CQQ
To determine
The Private savings and Government savings.
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Students have asked these similar questions
Ifthe government collects more in tax revenue than it spends, and households consume more than they get in after-tax income,then
a.private and public saving are both positive.
b.private and public saving are both negative.
c.privatesaving is positive,but public saving is negative.
d.private saving is negative,but public saving is positive.
If the government collects more in tax revenue thanit spends, and households consume more than theyget in after-tax income, thena. private saving and public saving are both positive.b. private saving and public saving are bothnegative.c. private saving is positive, but public saving isnegative.d. private saving is negative, but public saving ispositive.
If Congress instituted an investment tax credit, the interest rate would
Select one:
a.rise and saving would rise.
b.fall and saving would fall.
c.fall and saving would rise.
d.rise and saving would fall.
Knowledge Booster
Similar questions
- Question 49 a. Identify three government policies that discourage saving. b. Why do many economists advocate a consumption tax rather than an income tax? c. Explain howa higher rate of return on saving could, at least in theory, lead to lower saving.arrow_forwardWhich of the following would likely increase private saving? a. both expansion of means testing and a consumption tax b. expansion of means testing, but not a consumption tax c. a consumption tax, but not expansion of means testing d. neither expansion of means testing nor a consumption taxarrow_forwardWhat is the likely effect of a substantial increase in government borrowing on the private investment in an economy? A. Private investment will increase due to more government spending. B. Private investment will decrease due to the crowding-out effect. C. Private investment will remain unchanged as government borrowing does not affect private sectors. D. Private investment will first decrease, then increase as government spending stimulates the economy.arrow_forward
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