1. The national savings and investment identity helps us to understand a nations flow of trade...
1. The national savings and investment identity helps us to understand a nations flow of trade (balance of trade) and capital flows. It helps us understand the trade balance. The national savings and investment identity is as follows: S + (M-X) = I + (G-T)
Question:
Please define all of the terms in the identity. Which side is the supply side of the identity and which is the demand side of the identity, and why? Why is M-X on the supply side of the equation and why is G-T on the demand side of the equation?
Homework Answers
Add Answer to:
1. The national savings and investment identity helps us to
understand a nations flow of trade...
Needs Graph for this question In the context of the national savings and investment identity, briefly...
Needs Graph for this question In the context of the national savings and investment identity, briefly describe the main sources for both the supply of and demand for capital in the U.S. economy. There are two main sources for the supply of capital in the U.S. economy: saving by individuals and firms, called S, and the inflow of financial capital from foreign investors, which is equal to the trade deficit M – X, or imports minus exports. There are two...
Hypothetically, lets assume that the US is running a trade deficit, please demonstrate how the equation...
Hypothetically, lets assume that the US is running a trade deficit, please demonstrate how the equation S + (M-X) = I + (G-T) will be rearranged to reflect this situation. What is the relationship between the balance of trade and the flow of international capital and how does the rearrangement of the model reflect this? Please explain why the equation will be arranged in the way in which it is now arranged.
1) How would you characterize US trade policy since the Great Depression of the 1930s? Reinforce...
1) How would you characterize US trade policy since the Great Depression of the 1930s? Reinforce your argument with concrete examples of US trade policy. 2) GATT and its successor, the World Trade Organization, have established a set of rules for the commercial conduct of trading nations. Explain. 3) Discuss the economic-integration project known as the European Union in its different stages. Briefly characterize why we have come to refer to the EU as “multi-speed Europe.” 4) Discuss the key...
1. Supply and Demand Illustration of Trade In January 2019 the cost of aluminum in US...
1. Supply and Demand Illustration of Trade In January 2019 the cost of aluminum in US dollars is $0.85. Currently, in the global aluminum market, Australia is an exporting country and Germany is an importing country a) Treating Germany as a "small" country, illustrate the German supply and deman the absence of trade. b) If Germany weren't trading with the world, would Germany pay s0 85 for aluninum, or a price that is either higher or lower than S0.85 Explain...
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...
1) Suppose interest rates rise in the United States, but they don't rise in other nations....
1) Suppose interest rates rise in the United States, but they don't rise in other nations. As a result of this change, which of the following is true? I. The demand for the U.S. dollar will increase II. The demand for the U.S. dollar will decrease III. U.S. exports will decrease as a result of the changing value of the U.S. dollar. IV. U.S. exports will increase as a result of the changing value of the U.S. dollar. a) I...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
Assume that the following functions exist and describe production, savings, investment and capital behavior. a) Solve...
Assume that the following functions exist and describe production, savings, investment and capital behavior. a) Solve for output per worker in terms of capital per worker. [Y/L=something in the form of K/L] b) Assume the government is running a balanced budget, what does this mean for the investment function? c) Solve for investment in terms of output. d) How does Capital per Labor change over time? (Give the equation for the Dynamics of Capital and Output). (Keep everything in terms...
1.Given the following information about a closed economy, what is the level of investment spendin...
1.Given the following information about a closed economy, what is the level of investment spending and national saving, and what is the budget balance? There are no government transfers. GDP: $1,000 million T=$50 million C=$850 million G=$100 million 2.Given the following information about an open economy, what is the level of investment spending and National savings, and what are the budget balance and net capital inflow? There are no government transfers. GDP: $1,000 million G=$100 million C=$850 million X=$100 million...
4. Saving and net flows of capital and goods In a dosed economy. saving and gross...
4. Saving and net flows of capital and goods In a dosed economy. saving and gross investment must be equal, but this is not the case pe economy. In the following problem you explore how saving and gros investment are connected to the international flow of capital and good in an econom. Bording to the relationship between these various components of an economy, you will be asked to recall some relationship between agregate variables that will be useful in your...
1. Supply and Demand Illustration of Trade In January 2019 the cost of aluminum in US dollars is $0.85. Currently, in the global aluminum market, Australia is an exporting country and Germany is an importing country a) Treating Germany as a "small" country, illustrate the German supply and deman the absence of trade. b) If Germany weren't trading with the world, would Germany pay s0 85 for aluninum, or a price that is either higher or lower than S0.85 Explain...
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...
4. Saving and net flows of capital and goods In a dosed economy. saving and gross investment must be equal, but this is not the case pe economy. In the following problem you explore how saving and gros investment are connected to the international flow of capital and good in an econom. Bording to the relationship between these various components of an economy, you will be asked to recall some relationship between agregate variables that will be useful in your...
Most questions answered within 3 hours.
-
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 2 minutes ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 17 minutes ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 33 minutes ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 59 minutes ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 58 minutes ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 1 hour ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 1 hour ago -
Two concentric current loops lie in the same plane. The smaller
loop has a radius of...
asked 2 hours ago -
1)Which of the following is an
important difference between qualified and nonqualified retirement
plans?
a. Qualified...
asked 2 hours ago -
What's the streaming business's problem on the
horizon?
asked 3 hours ago -
I need help with writing the conclusion for this online lab
report
Abstract
By testing the...
asked 3 hours ago -
For the reaction 1N2+3H2-----> 2NH3, would the reaction rate
trend be: delta[NH3]/ delta t = -2...
asked 4 hours ago