Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 23, Problem 12SCQ
If a country is running a government budget surplus, why is (T - G) on the left side of the saving-investment identity?
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Chapter 23 Solutions
Principles of Economics 2e
Ch. 23 - If foreign investors buy more U.S. stocks and...Ch. 23 - If the trade deficit of the United States...Ch. 23 - State whether each of the following events...Ch. 23 - In what way does comparing a countrys exports to...Ch. 23 - At one point Canadas GDP was 1,800 billion and its...Ch. 23 - The GDP for the United States is 18,036 billion...Ch. 23 - Why does the trade balance and the current account...Ch. 23 - State whether each of the following events...Ch. 23 - How does the bottom portion of Figure 23.3,...Ch. 23 - Explain the relationship between a current account...
Ch. 23 - Using the national savings and Investment...Ch. 23 - If a country is running a government budget...Ch. 23 - What determines the size of a countrys trade...Ch. 23 - If domestic Investment increases, and there is no...Ch. 23 - Why does a recession cause a trade deficit to...Ch. 23 - Both the United States and global economies are...Ch. 23 - For each of the following, indicate which type of...Ch. 23 - How did large trade deficits hurt the East Asian...Ch. 23 - Describe a scenario in which a trade surplus...Ch. 23 - The United States exports 14 of GDP while Germany...Ch. 23 - Explain briefly whether each of the following...Ch. 23 - If imports exceed exports, is it a trade deficit...Ch. 23 - What is included in the current account balance?Ch. 23 - In recent decades, has the U.S. trade balance...Ch. 23 - Does a trade surplus mean an overall inflow of...Ch. 23 - What are the two main sides of the national...Ch. 23 - What are the main components of the national...Ch. 23 - When is a trade deficit likely to work out well...Ch. 23 - Does a trade surplus help to guarantee strong...Ch. 23 - What three factors will determine whether a nation...Ch. 23 - What is the difference between trade deficits and...Ch. 23 - Occasionally, a government official will argue...Ch. 23 - A government official announces a new policy. The...Ch. 23 - If a country is a big exporter, is it more exposed...Ch. 23 - If countries reduced trade barriers, would the...Ch. 23 - Is it better for your country to be an...Ch. 23 - Many think that the size of a trade deficit is due...Ch. 23 - If you observed a country with a rapidly growing...Ch. 23 - Occasionally, a government official will argue...Ch. 23 - What is more important, a countrys current account...Ch. 23 - Will nations that are more involved in foreign...Ch. 23 - Some economists warn that the persistent trade...Ch. 23 - In 2001, the United Kingdoms economy exported...Ch. 23 - Imagine that the U.S. economy finds itself in the...Ch. 23 - Table 23.7 provides some hypothetical data on...Ch. 23 - Imagine that the economy of Germany finds itself...
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- Discuss the role of budget surpluses and trade surpluses in national saving and investmentarrow_forwardWhat is the saving and investment equation? If national saving declines what will happen to domestic investment and net foreign investment?arrow_forwardAssume the United States Personal Savings equals zero. Using national income accounting concepts, show what this might mean for U.S. private investment spending and the US trade relationship with the world. How would the United States finance its investment spending? How would the US finance its government budget, especially if it becomes a budget deficit? Show and explainarrow_forward
- Given the following economic information for Country A (in RM billion): Saving (S) = –500 + 0.3Yd Investment (I) = 400 – 200r Government spending (G) = 500 Taxes (T) = 200 Nominal money supply (Ms ) = 4000 Money demand for transactions (Md t/P) = 0.2Y Money demand for speculations (Md s) = 1600 – 500r Price (P) = 2 di mana Y dan r adalah masing-masing mewakili tingkat pendapatan dan kadar bunga. where Y and r represent the levels of income and interest rate, respectively. Based on the above information, i) . Derive an expression for the IS and LM curve (four decimal point) in Y says. ii) . Calculate the equilibrium levels of income and interest rate (three decimal point).arrow_forwardThe figure below shows national saving (NS) and investment demand (1D ) for the hypothetical country of Slovappa. Real GDP is equal to potential GDP. The numbers are in billions of dollars. Assume the economy's national saving is NSo and investment is IDo- NSo NS Quantity of Investment and Saving (S) Suppose that at this level of national saving, the government of Slovappa has a budget deficit of $100. If the country's level of national saving is $200, then private saving must be $ a) 300 b) 100 c) 200 Real Interest Ratearrow_forwardThe capital spending is?arrow_forward
- Assume that GDP is $6500, personal disposable income is $5600, and the government budget deficit is $400. Consumption is $3800, and the trade deficit is $100. Calculate the saving (S), investment (I), and government spending (G).arrow_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_forwardhow do you solve national savingarrow_forward
- In a country, private savings equals 600, the government budget surplus equals 200, and the trade surplus equals 100. What is the level of private investment in this economy?arrow_forwardGovernment budget deficit constitutes 5 % of GDP, current account surplus is 100, disposable income of households is 2000, investment two times smaller than private saving and is 6 times smaller than consumption. What is the value of government spending?arrow_forwardWhat is fiscal deficit and what are two reasons why this economic statistic is so closely monitored in small fixed exchange rate economies?arrow_forward
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