When people decide to spend a smaller percentage of each paycheck, this causes national saving to...
When people decide to spend a smaller percentage of each paycheck, this causes national saving to ____ and the equilibrium interest rate to ____ in a closed economy.
Group of answer choices increase : decrease increase : increase decrease : increase decrease : decrease
Homework Answers
The answer increase, decrease
As people decide to spend a smaller percentage of each paycheck, the consumption reduces and the saving = income - consumption will increase. As a result, we have more savings or funds available chasing the same investment, and the equilibrium interest rate will decrease as a result.
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When people decide to spend a smaller percentage of each
paycheck, this causes national saving to...
1.67 pts When people decide to spend a smaller percentage of each paycheck, this causes national...
1.67 pts When people decide to spend a smaller percentage of each paycheck, this causes national saving to rate to _in a closed economy. and the equilibrium interest increase: increase decrease : decrease decrease: increase increase: decrease
Question 48 1.67 pts When people decide to spend a smaller percentage of each paycheck, this...
Question 48 1.67 pts When people decide to spend a smaller percentage of each paycheck, this causes national saving to closed economy and the equilibrium interest rateto_Ina Increases increase decrease increase decrease decrease Increase decrease Ned < Previous Not ved Submit 30 SO 9 & 7 8 $ 4 % 5 # 3 6 2 P U Y T R W E к J H G F. D S N M B V C X Question 49 1.67 pts Fluctuations...
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Consider the long-run theory of investment, saving, and growth. For a given level of national income,...
Consider the long-run theory of investment, saving, and growth. For a given level of national income, a decrease in private consumption or government purchases will cause the equilibrium interest rate to Select one: a. increase and the flow of national saving to decrease. b. decrease and the flow of national saving to decrease. c. decrease and the flow of national saving to increase. O d. increase and the flow of investment to increase. O e. increase and the flow of...
Consider the long-run theory of investment, saving, and growth. For a given level of national income,...
Consider the long-run theory of investment, saving, and growth. For a given level of national income, a decrease in private consumption or government purchases will cause the equilibrium interest rate to Select one: a. increase and the flow of investment to decrease. о b. decrease and the flow of national saving to decrease. c. decrease and the flow of national saving to increase. d. increase and the flow of investment to increase. о e. increase and the flow of national...
\ **each option is fall or rise // or increase or decrease *** causes the gov...
\
**each option is fall or rise // or increase or decrease
*** causes the gov to run a budget SURPLUS or Deficit
(options)
**** last they want the graph curve shifted to reflect Scenario
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1.67 pts When people decide to spend a smaller percentage of each paycheck, this causes national saving to rate to _in a closed economy. and the equilibrium interest increase: increase decrease : decrease decrease: increase increase: decrease
Question 48 1.67 pts When people decide to spend a smaller percentage of each paycheck, this causes national saving to closed economy and the equilibrium interest rateto_Ina Increases increase decrease increase decrease decrease Increase decrease Ned < Previous Not ved Submit 30 SO 9 & 7 8 $ 4 % 5 # 3 6 2 P U Y T R W E к J H G F. D S N M B V C X Question 49 1.67 pts Fluctuations...
Consider the long-run theory of investment, saving, and growth. For a given level of national income, a decrease in private consumption or government purchases will cause the equilibrium interest rate to Select one: a. increase and the flow of national saving to decrease. b. decrease and the flow of national saving to decrease. c. decrease and the flow of national saving to increase. O d. increase and the flow of investment to increase. O e. increase and the flow of...
Consider the long-run theory of investment, saving, and growth. For a given level of national income, a decrease in private consumption or government purchases will cause the equilibrium interest rate to Select one: a. increase and the flow of investment to decrease. о b. decrease and the flow of national saving to decrease. c. decrease and the flow of national saving to increase. d. increase and the flow of investment to increase. о e. increase and the flow of national...
\
**each option is fall or rise // or increase or decrease
*** causes the gov to run a budget SURPLUS or Deficit
(options)
**** last they want the graph curve shifted to reflect Scenario
3
10. The market for loanable funds and government policy The following graph shows the market for loanable funds. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. Treat each scenario separately by...
Use the IS-LM model to predict the short-run effects of each of the following shocks on income, the interest rate, consumption, and investment. In each case, explain what the Bank of Canada should do to keep income at its initial level. For each of these four shocks, (1) shift the appropriate curve in the IS-LM graph to reflect how the economy will respond to the shock; (2) indicate the impact of the shock on consumption, income, interest rate, and investment...
1. An economy has government purchases of 2000. Desired national saving and desired investment are given by sd = 200+ 5000r + 0.10Y-0.20G pd - 1000 - 4000r When the full-employment level of output equals 5000, then calculate the real interest rate at which the goods market is in equilibrium
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