Homework Answers
The given accounting identity is as follows -
S + (T-G) = I + CA
This identity can be written as follows -
S + (T-G) - I = CA
This indicates that sum total of private domestic saving and the public saving exceeds the domestic investment.
In such case, excess savings will be invested abroad.
Thus,
The given identity states that a country with a high savings rate and a government surplus has additional funds available to invest in other countries.
Hence, the correct answer is the option (2).
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QUESTION 14 Which of the following statements is captured by the accounting identity, S+ (T-G)+CA? A...
Which of the following is NOT true about this national income equation: S + (T - G) = I + CA A) For the current account,...
Which of the following is NOT true about this national income equation: S + (T - G) = I + CA A) For the current account, CA, to improve, we may have to invest less than otherwise would be the case. B) For the current account, CA, to improve, we may have to save less to maintain the same amount of investment that includes foreign saving. C) For the current account, CA, to improve, the government may have to run...
1) Use the national income identity (S-1) = (G + TR - TA) + (X-M) to...
1) Use the national income identity (S-1) = (G + TR - TA) + (X-M) to answer the following questions as true, false or uncertain and justify your answer. a). If the budget deficit is positive, imports are likely to increase more than exports. (8 points) b) If the budget deficit decreased by $15 billion, private domestic saving decreased by $20 billion, exports increased by $10 billion, and imports increased by $15 billion. Domestic investment must have increased by $30...
Among the most important problems of implementing fiscal policy include all except which of the following?...
Among the most important problems of implementing fiscal policy include all except which of the following? Correctly timing the desired fiscal stimulus, given the inevitable lags and forecasting errors Determining how large a stimulus to apply Assessing when policy actions should be reversed Determining how long a time lag to apply If the central bank does not use accommodating monetary policy, a fiscal stimulus is likely to increase interest rates, which in turn, will cause planned investment to decrease. What...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
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?...
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?...
The options are : National savings = (Y - C - G) or (Y-C) or (G-T)...
The options are : National savings = (Y - C - G)
or (Y-C) or (G-T)
or (Y-T-G)
for the second blank under National Savings the options are (Y)
or (I) or (C) or
(G)
The options are : Private savings = (Y - C - T)
or (Y - T - I) or (T - G)
or (C -T)
The options are : Public Savungs = (Y - C - T)
or (Y - T - I) or (T...
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The drop downs for the formulas are Y C G and T and the last drop...
The drop downs for the formulas are Y C G and T and the last
drop down is SURPLUS/DEFICIT
The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,320 million. Enter the amount for consumption. National Income Account Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (I) Value (Millions of dollars) 300 210 270 Complete the following table by using national income accounting...
1) Use the national income identity (S-1) = (G + TR - TA) + (X-M) to answer the following questions as true, false or uncertain and justify your answer. a). If the budget deficit is positive, imports are likely to increase more than exports. (8 points) b) If the budget deficit decreased by $15 billion, private domestic saving decreased by $20 billion, exports increased by $10 billion, and imports increased by $15 billion. Domestic investment must have increased by $30...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
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?...
The options are : National savings = (Y - C - G)
or (Y-C) or (G-T)
or (Y-T-G)
for the second blank under National Savings the options are (Y)
or (I) or (C) or
(G)
The options are : Private savings = (Y - C - T)
or (Y - T - I) or (T - G)
or (C -T)
The options are : Public Savungs = (Y - C - T)
or (Y - T - I) or (T...
The drop downs for the formulas are Y C G and T and the last
drop down is SURPLUS/DEFICIT
The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,320 million. Enter the amount for consumption. National Income Account Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (I) Value (Millions of dollars) 300 210 270 Complete the following table by using national income accounting...
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