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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Similar questions
- In a small open economy, if the budget deficit increases, then which of the following is likely to be accurate? a. If private saving and domestic investment stay the same, then net exports increase. b. If private saving stays the same and net exports increase, then domestic investment decreases. c. If private saving decreases and domestic investment stays the same, then net exports increase. d. If private saving increases and net exports decrease, then domestic investment decreases.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_forwardWHICH OF THE FOLLOWING IS NOT A GENUINE CONCERN ABOUT THE ISSUE OF RISING INTERNATIONAL PUBLIC DEBT? inability of government to repay debt or rising interest rates or declining investment or government expenditure?arrow_forward
- Imagine that the U.S. economy finds itself in the following situation: a government budget deficit of $100 billion, total domestic savings of $1,500 billion, and total domestic physical capital investment of $1,600 billion. According to the national saving and investment identity, what will be the trade balance? What will be the trade balance if investment rises by $50 billion, while the budget deficit and national savings remain the same?arrow_forwardPrivate domestic saving provides the pool of funds available for Private domestic saving provides the pool of funds available for ... only financing government budget deficits putting under one's mattress Domestic investment and financing government budget deficits Consuming goods and servicesarrow_forwardTurkey has run a trade deficit for almost every year during the past few decades. Which of the following is the main factor leading to this situation? a.The Turkish lira is overvalued against foreign currencies. b.International demand for Turkish goods and services is low. c.Domestic demand for foreign goods and services is high. d.National saving in Turkey is low relative to domestic investment.arrow_forward
- If a country is experiencing a budget deficit and the government reduced spending, resulting in a balanced budget. How a country’s shift from budget deficit to balanced budget would affect its investments, economic growth, net capital outflow and currency exchange rate?arrow_forwardFuture U.S. deficits could be decreased by options: increasing transfer payments and decreasing interest payments on the debt increasing government expenditures and decreasing taxes decreasing current and future taxes decreasing government expenditures and increasing taxesarrow_forwardWhat is a foreign trade deficit or surplus? How does this affectinterest rates?arrow_forward
- Assume that GDP is $6,000, personal disposable income is $5,100, and the government budget deficit is $200. Consumption is $3,800, and the trade deficit is $100. a. How large is saving ( S )? b. How large is investment ( I )? c. How large is government spending ( G )?arrow_forwardWhat is the effect of a fiscal expansion on output and interest rates when exchange rates are fixed and capital is perfectly mobile?arrow_forwardIf national income Y = 10,500, disposable income Yd = 8,500 , consumption is C = 8,000, transfer payments TR = 150 and the budget deficit is BD = 200, what is the level of private domestic investment, I ? (please insert the round number without the Euro symbol)arrow_forward
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