Economics, Student Value Edition (6th Edition)
Economics, Student Value Edition (6th Edition)
6th Edition
ISBN: 9780134123851
Author: Hubbard, R. Glenn; O'Brien, Anthony Patrick
Publisher: PEARSON
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Chapter 29, Problem 29.3.10PA
To determine

The effect on the domestic investment spending.

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You have the following annual figures for the New Zealand economy.             Investment expenditure                      $42.5 billion            Government savings                           -$1.7 billion Many politicians and commentators would like to see continued increases in investment and current account surpluses rather than deficits. If these events are to occur, what else must be happening in the economy?   1. The Government must raise the retirement age. 2. Government spending must fall 3. National savings (private and government) must rise 4. New Zealand must restrict foreign ownership of land and other assets
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