Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter 27, Problem 11CQ
To determine
Check whether the people of high income per capita countries will help or hurt the low income per capita countries.
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Students have asked these similar questions
Distinguish between saving and investment.
What is national saving?
What do loanable funds finance? What is the source of loanable funds?
Loanable funds finance _______.
A.
business investment, the government budget surplus, and international borrowing
B.
business investment, the government budget deficit, and international investment or lending
C.
private saving, the government budget surplus, and international borrowing
D.
private saving, the government budget deficit, and international investment or lending
Chapter 27 Solutions
Economics: Private and Public Choice (MindTap Course List)
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Similar questions
- how do you solve national savingarrow_forwardSuppose the government of a small open economy decides to increase taxes on all gross incomes, describe what will happen to public saving assuming all other things remain constant. a.Public saving will not be affected b.Public saving will decrease c.National saving will increase d.Public saving will increasearrow_forwardsuppose that in a closed economy GDP is equal to 22,000, taxes are equal to 7000, consumption is equal to 13,000, and government expenditures are equal to 4000. What is private saving?arrow_forward
- It explains what is the relationship of the financial market with the economic growth of a country.arrow_forwardSuppose the people in a certain economy decide to stop saving and instead use all their income for consumption. They do nothing to add to their stock of human or physical capital. Discuss the prospects for growth of such an economy.arrow_forwardWhy is there a trade-off between the amount of consumption that people can enjoy today and the amount of consumption that they can enjoy in the future? Why can’t people enjoy more of both? How does saving relate to investment and thus to economic growth? What role do banks and other fifinancial institutions play in aiding the growth process?arrow_forward
- Find a quote below and illustrate the effect of these phenomena on the world market for loanable funds. Make sure to explain the change of the equilibrium price and quantity of loanable funds. “Many Economists worry that the aging populations of industrial countries are going to start running down their savings just when the investment appetite of emerging economies, mostly in East Asia, is growing”.arrow_forward“The result of the war that happened in Country A, it made Country A has negative public saving which is reduces national saving (the sum of public and private saving)”. Based on this information, explain (Show it with the graph) what happen in the market for loanable funds and the market for foreign currency exchangearrow_forwardDefine private saving, public saving and national saving. How are they related?arrow_forward
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