A nation is experiencing a recession and public and private savings both decrease by $5 billion...
A nation is experiencing a recession and public and private savings both decrease by $5 billion each, whereas private investment drops by $15 billion. What will likely happen to the trade surplus?
Homework Answers
Trade surplus or current account balance is the difference between National saving and investment. Investment decreases by 15 billion and national saving decreases by 10 billion. Trade surplus will then be change by -10 - (-15) or +5 billion. Therefore trade surplus will increase by 5 billion.
Add Answer to:
A nation is experiencing a recession and public and private
savings both decrease by $5 billion...
Content attribution QUESTION 14.1 POINT Economists sometimes describe the balance of trade as the balance of...
Content attribution QUESTION 14.1 POINT Economists sometimes describe the balance of trade as the balance of payments, because Select the correct answer below: they are mistaking the flow of goods with the flow of money O each category of the current account balance involves a corresponding flow of payments in the same direction o each category of the current account balance involves a corresponding flow of payments in the opposite direction O its financial capital outflows are equal to the...
Country private domestic savings of $650 billion, a government deficit of $200 billion, and private domestic...
Country private domestic savings of $650 billion, a government deficit of $200 billion, and private domestic investment of $500 billion. What is the trade surplus / deficit?
HON 54 Suppose an economy has a private domestic savings of $245 billion, a government surplus...
HON 54 Suppose an economy has a private domestic savings of $245 billion, a government surplus of $500 billion, and private domestic investment of $1,125 billion. How much is the trade deficit (in billions of dollars)? Recall the savings investment formula: 5+ (M - X) = 1 + (G-T) Provide your answer below: billion
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...
In a closed economy, Y = $15 billion C = $12.0 billion 1 = $1.5 billion TR = $1.0 billion T = $1.0 billion Calculate ea...
In a closed economy, Y = $15 billion C = $12.0 billion 1 = $1.5 billion TR = $1.0 billion T = $1.0 billion Calculate each of the following (round each answer to one decimal place) Private savings = $1 billion Public savings = $1 billion Total savings in this economy = $ billion The government's budget deficit or surplus = 5 billion (enter a negative number for a deficit, positive number for surplus).
7. If at some interest rate desired investment is $400 billion, desired private saving is $600...
7. If at some interest rate desired investment is $400 billion, desired private saving is $600 billion, and the budget deficit is $300 billion, is there a surplus or a shortage in the market for loanable funds? What does this imply would happen to interest rates? 8. In a closed economy, GDP is $1000, government purchases are $200, and consumption is $700. If the government has a budget surplus of $25, what are investment, taxes, private saving, public saving and...
5. Suppose the government borrows $40 billion more next year Use the supply and demand diagram to analyze this p...
5. Suppose the government borrows $40 billion more next year Use the supply and demand diagram to analyze this policy. Does the interest rate rise or fall? a. b. What happens to investment? To private savings? To public savings? To national savings? ac Lab 6A:Utility Programs Lab: Utility Programs to find 3 examples of utility programs that are available as open source software. Each utility program should perform a different Use Google task In the Online Editor below include the...
14. Suppose instead that T < G. Does the investment rate still equal the private savings...
14. Suppose instead that T < G. Does the investment rate still equal the private savings rate? If the savings Tate is 20% and the deficit is 5% of GDP, what in the investment rate? A. 25% B. 20% C. 15% D. 10% 15. Suppose capital per worker increases from 2 to 3. We know that this increase will cause what to happen to output per worker in the same period? A. output per worker to increase. B. output per...
Indicate what would happen to both M1 and M2 (increase, decrease, no change) due to each of the following events.
4. Indicate what would happen to both M1 and M2 (increase, decrease, no change) due to each of the following events. Consider each lettered event to be independent of the others. a) you write a check for cash at the casino b) an individual redeems a personal CD and deposits the funds into a savings deposit account c) U.S. commercial banks use some of their excess reserves to purchase $250 billion worth of U.S. Treasury securities from the Federal Reserve. d) as the economy...
Indicate what would happen to both M1 and M2 (increase, decrease, no change) due to each of the following events.
4. Indicate what would happen to both M1 and M2 (increase, decrease, no change) due to each of the following events. Consider each lettered event to be independent of the others.a) you write a check for cash at the casinob) an individual redeems a personal CD and deposits the funds into a savings deposit accountc) U.S. commercial banks use some of their excess reserves to purchase $250 billion worth of U.S. Treasury securities from the Federal Reserve.d) as the economy...
Content attribution QUESTION 14.1 POINT Economists sometimes describe the balance of trade as the balance of payments, because Select the correct answer below: they are mistaking the flow of goods with the flow of money O each category of the current account balance involves a corresponding flow of payments in the same direction o each category of the current account balance involves a corresponding flow of payments in the opposite direction O its financial capital outflows are equal to the...
HON 54 Suppose an economy has a private domestic savings of $245 billion, a government surplus of $500 billion, and private domestic investment of $1,125 billion. How much is the trade deficit (in billions of dollars)? Recall the savings investment formula: 5+ (M - X) = 1 + (G-T) Provide your answer below: billion
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...
In a closed economy, Y = $15 billion C = $12.0 billion 1 = $1.5 billion TR = $1.0 billion T = $1.0 billion Calculate each of the following (round each answer to one decimal place) Private savings = $1 billion Public savings = $1 billion Total savings in this economy = $ billion The government's budget deficit or surplus = 5 billion (enter a negative number for a deficit, positive number for surplus).
5. Suppose the government borrows $40 billion more next year Use the supply and demand diagram to analyze this policy. Does the interest rate rise or fall? a. b. What happens to investment? To private savings? To public savings? To national savings? ac Lab 6A:Utility Programs Lab: Utility Programs to find 3 examples of utility programs that are available as open source software. Each utility program should perform a different Use Google task In the Online Editor below include the...
14. Suppose instead that T < G. Does the investment rate still equal the private savings rate? If the savings Tate is 20% and the deficit is 5% of GDP, what in the investment rate? A. 25% B. 20% C. 15% D. 10% 15. Suppose capital per worker increases from 2 to 3. We know that this increase will cause what to happen to output per worker in the same period? A. output per worker to increase. B. output per...
Most questions answered within 3 hours.
-
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 26 minutes ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 2 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 1 hour ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 3 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 4 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 4 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 4 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 4 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 4 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 5 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 5 hours ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 5 hours ago