Homework Answers
Hello,
Current account deficit- Current account deficit
means value of goods and services imports are greater than the
value of exports. Savings should be low and the investment should
be high, government should spend more on investment rather than
doing savings.
Thats why option C is correct.
I hope this clear your doubt.
Feel free to comment if you still have any query or need something else. I'll help asap.
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can you help me explaining why the answer is C?
255 Low private savings and/or high...
Recall that national savings (S) is the sum of private savings and public savings. S =...
Recall that national savings (S) is the sum of private savings and public savings. S = SP + S a. Show that private savings can be written as a function of investment, the current account and the government's budget deficit. (3 marks) b. Show that the current account can be written as a function of private savings, investment and the government's budget deficit. What does this imply about the ways that the government can reduce the current account deficit? (3...
Could you please help me to answer these questions with clear writing or typing! Thank you...
Could you please help me to answer these questions with
clear writing or typing! Thank you very much!
QUESTION 10 (20 minutes) LO7b) Balance of Payments Current Account (CA) 14 MARKS a) Describe briefly the composition of each of the four sub-accounts in the Balance of Payments Current Account; (8 marks) While recurring deficits may be of concern a deficit can be beneficial. Discuss one reason why a Current Account deficit of short duration could be beneficial to a country;...
Questions: c) An emergency tariff on a wide range of imports would be effective in addressing...
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5. Current account deficit Let G stand for government spending, T for taxes, I for private...
5. Current account deficit Let G stand for government spending, T for taxes, I for private investment, and S for private saving. Complete the following equation for the current account deficit: + Current Account Deficit Which of the following statements about the current account deficit are correct? Check all that apply A successful reduction of a nation's current account deficit must be supported by complementary policies in foreign nations with large current account surpluses Using a current account deficit to...
Asked the professor and he told me both of #3and #5 are correct. I can understand...
Asked the professor and he told me both of #3and #5 are
correct. I can understand #3 but may I know why #5is also
correct?
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Suppose that as an economist working for the Bureau of Labor Statistics you're given the following...
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Suppose that as an economist working for the Bureau of Labor Statistics you're given the following...
Suppose that as an economist working for the Bureau of Labor Statistics you're given the following information for the current year: Private Disposable Income -- Federal Budget Deficit National Saving Total Domestic Investment- Total Tax Revenue Depreciation Investment Transfer Payments Gov. Interest Payments Net Factor Payments $20,000 $2,000 $3,000 $12,000 $5,000 $3,000* $1,500 S0 $1,000 *Depreciation Investment is included in total investment. With these figures, compute the following: (a)What is the level of private saving and consumption in this economy?...
15. Which of the following items is assets of a bank A. loans B. checking account deposits C, saving account deposits D. money borrowed from Federal Reserve 16. In an open economy, if a country has a...
15. Which of the following items is assets of a bank A. loans B. checking account deposits C, saving account deposits D. money borrowed from Federal Reserve 16. In an open economy, if a country has a trade surplus, which is NOT correct-? A. Exports > Imports. C. Saving > Investment D. Net capital outflow> 0 17. Inflation will be reflected as the directly proportional change of A. Total money supply increase B. Nominal wage growth, but not nominal interest...
you're given the 3. Suppose that as an economist working for the Bureau of Labor Statistics...
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These questions help you review the Introduction and the Ricardian model. For each statement, determine whether...
These questions help you review the Introduction and the
Ricardian model. For each statement, determine whether it's T/F,
and then explain why.
Questions 1-2 are based on the production of the iPhone. Assume that China exports the iPhone to the U.S. In addition, China produces only 1 iPhone, and the U.S. imports only 1 iPhone. Sum of Its Parts The iPhone is assembled in China with parts from many countries, but when it comes to calculating the U.S. trade deficit...
Recall that national savings (S) is the sum of private savings and public savings. S = SP + S a. Show that private savings can be written as a function of investment, the current account and the government's budget deficit. (3 marks) b. Show that the current account can be written as a function of private savings, investment and the government's budget deficit. What does this imply about the ways that the government can reduce the current account deficit? (3...
Could you please help me to answer these questions with
clear writing or typing! Thank you very much!
QUESTION 10 (20 minutes) LO7b) Balance of Payments Current Account (CA) 14 MARKS a) Describe briefly the composition of each of the four sub-accounts in the Balance of Payments Current Account; (8 marks) While recurring deficits may be of concern a deficit can be beneficial. Discuss one reason why a Current Account deficit of short duration could be beneficial to a country;...
5. Current account deficit Let G stand for government spending, T for taxes, I for private investment, and S for private saving. Complete the following equation for the current account deficit: + Current Account Deficit Which of the following statements about the current account deficit are correct? Check all that apply A successful reduction of a nation's current account deficit must be supported by complementary policies in foreign nations with large current account surpluses Using a current account deficit to...
Asked the professor and he told me both of #3and #5 are
correct. I can understand #3 but may I know why #5is also
correct?
Question 4 0 1 point Which of the following conditions must be satisfied in a closed economy? 1) Private saving equals investment. 2) There is no government spending or taxes. 3) Exports equal imports. 4) Government spending equals taxes. 5) Total saving equals investment.
Suppose that as an economist working for the Bureau of Labor Statistics you're given the following information for the current year: Private Disposable Income -- Federal Budget Deficit National Saving Total Domestic Investment- Total Tax Revenue Depreciation Investment Transfer Payments Gov. Interest Payments Net Factor Payments $20,000 $2,000 $3,000 $12,000 $5,000 $3,000* $1,500 S0 $1,000 *Depreciation Investment is included in total investment. With these figures, compute the following: (a)What is the level of private saving and consumption in this economy?...
Suppose that as an economist working for the Bureau of Labor Statistics you're given the following information for the current year: Private Disposable Income -- Federal Budget Deficit National Saving Total Domestic Investment- Total Tax Revenue Depreciation Investment Transfer Payments Gov. Interest Payments Net Factor Payments $20,000 $2,000 $3,000 $12,000 $5,000 $3,000* $1,500 S0 $1,000 *Depreciation Investment is included in total investment. With these figures, compute the following: (a)What is the level of private saving and consumption in this economy?...
15. Which of the following items is assets of a bank A. loans B. checking account deposits C, saving account deposits D. money borrowed from Federal Reserve 16. In an open economy, if a country has a trade surplus, which is NOT correct-? A. Exports > Imports. C. Saving > Investment D. Net capital outflow> 0 17. Inflation will be reflected as the directly proportional change of A. Total money supply increase B. Nominal wage growth, but not nominal interest...
you're given the 3. Suppose that as an economist working for the Bureau of Labor Statistics following information for the current year: Private Disposable Income Federal Budget Deficit National Saving Total Domestic Investment- Total Tax Revenue Depreciation Investment Transfer Payments Gov. Interest Payments $20,000 $2,000 $3,000 $12,000 $5,000 $3,000* $1,500 $0 Net Factor Payments $1,000 *Depreciation Investment is included in total investment. With these figures, compute the following: What is the level of private saving and consumption in this economy?...
These questions help you review the Introduction and the
Ricardian model. For each statement, determine whether it's T/F,
and then explain why.
Questions 1-2 are based on the production of the iPhone. Assume that China exports the iPhone to the U.S. In addition, China produces only 1 iPhone, and the U.S. imports only 1 iPhone. Sum of Its Parts The iPhone is assembled in China with parts from many countries, but when it comes to calculating the U.S. trade deficit...
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