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 national saving?
Homework Answers
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7. If at some interest rate desired investment is $400 billion,
desired private saving is $600...
6. Suppose there is a surplus in the market for loanable funds. Is the interest rate...
6. Suppose there is a surplus in the market for loanable funds. Is the interest rate above or below its equilibrium level? How do saving and investment at this interest rate be compared? Which one is greater? 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...
In a closed economy, private saving is smaller than investment if government spending exceeds tax revenue....
In a closed economy, private saving is smaller than investment if government spending exceeds tax revenue. Select one: True False If there is a surplus of loanable funds, then neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium. Select one: True False An increase in the budget deficit would cause a shortage of loanable funds at the original interest rate, which would lead to falling interest...
2. Suppose GDP of a closed economy is $10 billion, consumption is $7 billion, private saving...
2. Suppose GDP of a closed economy is $10 billion, consumption is $7 billion, private saving is $1 billion and public saving is $0.2 billion. Calculate taxes, government purchases, national saving and investment.
2. Suppose GDP is S600 billion taxes are S100 billion private saving is S50 billion, public...
2. Suppose GDP is S600 billion taxes are S100 billion private saving is S50 billion, public saving is $20 billion, assuming that this economy is closed. Calculate consumption government purchase, national saving and investment?
2. The country, Hoosier (a closed economy), has the following data: GDP: Y = 1200, Consumption:...
2. The country, Hoosier (a closed economy), has the following data: GDP: Y = 1200, Consumption: C = 600 – 10,000 r, Taxes: T = 200, Government purchases: G = 300. The investment is I = 700 – 10,000 r a. Use the information above to find the supply and demand equations for loanable funds: i. Supply equation: ii. Demand equation: _ b. What is the equilibrium interest rate, r, and what are national saving and investment, S and I?...
Please do it correctly and clearly so I can understand the answer. Thank you! 2. The...
Please do it correctly and clearly so I can understand the
answer. Thank you!
2. The country, Hoosier (a closed economy), has the following data: GDP: Y = 1200, Consumption: C = 600 - 10,000 r, Taxes: T = 200, Government purchases: G = 300. The investment is I = 700 - 10.000 a. Use the information above to find the supply and demand equations for loanable funds: i. Supply equation: ii. Demand equation: b. What is the equilibrium interest...
2. The country, Hoosier (a closed economy), has the following data: GDP: Y = 1200, Consumption:...
2. The country, Hoosier (a closed economy), has the following data: GDP: Y = 1200, Consumption: C=600 - 10,000 r, Taxes: T = 200, Government purchases: G=300. The investment is I = 700 - 10,000 a. Use the information above to find the supply and demand equations for loanable funds: (i) Supply equation: 360 + 10,000+ sex theri um ii. Demand equation: 300 - 10.000 equat to b. What is the equilibrium interest rate, r, and what are national saving...
6. The index can be used to measure an overall inflation rate of an economy. (a....
6. The index can be used to measure an overall inflation rate of an economy. (a. True b. False) 7. The official inflation rate by the government is always underestimated and lower than the actual inflation rate. (a. True b.False) 8. Public saving is equal to national saving plus private saving. (a. True b. False) 9. Hugh government budget deficit can make an economy grow slower in the long run. (a. True b.False) 10. Both supply and demand for loanable...
4. GDP 20 Consumption 13 Taxes-8 Transfer Pmts=4 Public Saving= -2 A) Calculate Private Saving, Government Spending...
4. GDP 20 Consumption 13 Taxes-8 Transfer Pmts=4 Public Saving= -2 A) Calculate Private Saving, Government Spending, Investment and National Saving B) Is the Govt budget currently in surplus, deficit or balanced? C) Explain the role of Savings/Investment to long run growth. D) How is the Govt budget impacting the level of Investment?
2. Saving and investment in the national income accounts The following table contains data for a...
2. Saving and investment in the national income accounts The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,330 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases (GG) Taxes minus Transfer Payments (TT) 455 Consumption (CC) 700 Investment (II) 280 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use...
2. Suppose GDP of a closed economy is $10 billion, consumption is $7 billion, private saving is $1 billion and public saving is $0.2 billion. Calculate taxes, government purchases, national saving and investment.
2. Suppose GDP is S600 billion taxes are S100 billion private saving is S50 billion, public saving is $20 billion, assuming that this economy is closed. Calculate consumption government purchase, national saving and investment?
2. The country, Hoosier (a closed economy), has the following data: GDP: Y = 1200, Consumption: C = 600 – 10,000 r, Taxes: T = 200, Government purchases: G = 300. The investment is I = 700 – 10,000 r a. Use the information above to find the supply and demand equations for loanable funds: i. Supply equation: ii. Demand equation: _ b. What is the equilibrium interest rate, r, and what are national saving and investment, S and I?...
Please do it correctly and clearly so I can understand the
answer. Thank you!
2. The country, Hoosier (a closed economy), has the following data: GDP: Y = 1200, Consumption: C = 600 - 10,000 r, Taxes: T = 200, Government purchases: G = 300. The investment is I = 700 - 10.000 a. Use the information above to find the supply and demand equations for loanable funds: i. Supply equation: ii. Demand equation: b. What is the equilibrium interest...
2. The country, Hoosier (a closed economy), has the following data: GDP: Y = 1200, Consumption: C=600 - 10,000 r, Taxes: T = 200, Government purchases: G=300. The investment is I = 700 - 10,000 a. Use the information above to find the supply and demand equations for loanable funds: (i) Supply equation: 360 + 10,000+ sex theri um ii. Demand equation: 300 - 10.000 equat to b. What is the equilibrium interest rate, r, and what are national saving...
6. The index can be used to measure an overall inflation rate of an economy. (a. True b. False) 7. The official inflation rate by the government is always underestimated and lower than the actual inflation rate. (a. True b.False) 8. Public saving is equal to national saving plus private saving. (a. True b. False) 9. Hugh government budget deficit can make an economy grow slower in the long run. (a. True b.False) 10. Both supply and demand for loanable...
4. GDP 20 Consumption 13 Taxes-8 Transfer Pmts=4 Public Saving= -2 A) Calculate Private Saving, Government Spending, Investment and National Saving B) Is the Govt budget currently in surplus, deficit or balanced? C) Explain the role of Savings/Investment to long run growth. D) How is the Govt budget impacting the level of Investment?
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