Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971509
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 18, Problem 3CQQ
To determine
Changes in volume of export and import.
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A country’s investment is 8, its government spends 10 and raises 9 in taxes, and its current account is -2. Find the country’s private saving.
Find the country’s public saving.
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You are given the following information about an economy:
Gross private domestic investment = 40
Government purchases of goods and services = 30
Gross national product (GNP) = 200
Current account balance = -20
Taxes = 60
Government transfer payments to the domestic private sector = 25
Interest payments from the government to the domesticprivate sector = 15 (Assume all interest payments by the government go to domestic households.)
Factor income received from rest of world = 7
Factor payments made to rest of world = 9
Find the following, assuming that government investment is zero:
a. Consumption, Net exports,GDP and Net factor payments from abroad
b. Private saving, Government saving and National saving
Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP
Your firm sells meat to Indonesia
Chapter 18 Solutions
Principles of Macroeconomics (MindTap Course List)
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Similar questions
A large open economy has desired national saving of Sd = 1200 + 1000rw, and desired national investment of Id = 1000 - 500rw. The foreign economy has desired national saving of = 1300 + 1000rw, and desired national investment of = 1800 - 500rw. Suppose the foreign country's government increases its spending by 300 and private saving does not change. Then in equilibrium, the foreign country has net exports equal to____
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Ifthe value of a nation's imports exceeds the value of its exports,which of the following
is NOT true?
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c.Domestic investment is greater than national saving.
d.The nation is experiencing a net outflow of capita
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U.S. net export spending falls when?
the inflation rate is lower in the United States relative to other countries.
the price level in the United States falls relative to the price level in other countries.
the value of the U.S. dollar decreases relative to other Currencies.
the growth rate of U.S. GDP is faster than the growth rate of GDP in other countries.
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Discuss the role of budget surpluses and trade surpluses in national saving and investment
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Discuss which of the following fall into the categories of consumption, investment,government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, andwhether the impact is to increase or decrease GDP(d) Your firm sells meat to Indonesia (e) The fish and chips shop down the road buys fish to make meals for diners.(f) The same shop buys a deep fryer to fry fish for meal
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Discuss which of the following fall into the categories of consumption, investment,government expenditure and net exports from the Y= C+ I + G + NX (X - M) identity , and sheathed the impact is to increase or decrease GDP
a) Charles buys a second hand textbook from Tim
b) when Charles bought the book, he paid Sarah $10 to collect it from tim
c) Thomas buys a new house
d) your firm sells meat to Indonesia
e) the fish and chips shop down the road buys fish to make meals for dinner
f) the same shop buys deep fryer to fry fish for meals
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In an open economy, if the level of net exports rises, it must be the case thata) there is an increase in saving.b) there is an increase in investment.c) the value of saving less investment must fall.d) none of the above.
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Most of the investment decisions in the U.S. economy are made by
a.
consumers.
b.
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businesses.
d.
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You are given the following information about an economy:
Gross private domestic investment = 40
Government purchases of goods and services = 30
Gross national product (GNP) = 200
Current account balance = -20
Taxes = 60
Government transfer payments to the domestic
private sector = 25
Interest payments from the government to the domestic
private sector = 15 (Assume all interest payments
by the government go to domestic households.)
Factor income received from rest of world = 7
Factor payments made to rest of world = 9
Find the following, assuming that government investment is zero:
(a.) Consumption
(b.) Net exports
(c.) GDP
(d.) Net factor payments from abroad
(e.) Private saving
(f.) Government saving
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In a small open economy, if the budget deficit increases, then which of the following is likely to be accurate?
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d. If private saving increases and net exports decrease, then domestic investment decreases.
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Economics
Consider the following data for country B, an open economy, for this year:
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a) Find country B’s domestic investment.
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c) Find country B’s public saving.
d) Find country A’s national saving.
e) Find country B’s net foreign investment
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A country has domestic investment of $100 billion. Its citizens purchase $500 of foreign assets and foreign citizens purchase $300 of its assets. What is national saving?Answer1. $600 billion2. $300 billion3. $100 billion4. -$100 billion
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