Given the following: Budget Deficit = 20; Trade Deficit = 30; and Investment Spending = 10. The amount of savings in this economy is Group of answer choices 20. 50. none of the other answers are correct. 10. 30. 60.
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Given the following:
Budget Deficit = 20;
Investment Spending = 10.
The amount of savings in this economy is
Group of answer choices
20.
50.
none of the other answers are correct.
10.
30.
60.
Step by step
Solved in 3 steps
- A media company wants to know how much consumers spend in a closed economy. The answer is not readily available, but we know the following: Consumption: C = 50 + 0.6(Y - T) • Investment: 1 = 40-500 i • Taxes: T = 2C . Government spending: G = 20 where Y is GDP and i is the interest rate. At the time of the analysis, the central bank made sure that the interest rate. was 4% What is the level of consumption C? Select one: a 155 b. 170 c. 195 d. 220C= 26 +0.75Y = 60 X = 24 M = 10 (Advanced analysis) The equations give information for a private open economy. The letters Y, C, I, X, and M stand for GDP, consumption, gross investment, exports, and imports, respectively. Figures are in billions of dollars. The multiplier for the economy is 4.6. 3.33. 5.0. 4.0.In a given economy, consumption is given by C = 1000+ (Y-T) If the real GDP is 9,606 and taxes and government spending are 2,408 each, what is national savings? Give your answer as a whole number.
- We have the following data for a hypothetical closed economy: GNP = $14,000 Consumption (C) = $8,000 Government Purchases (G) = $1,200 Tax Collections (T) = $1,200 What is the value of private savings SP? $ What is the value of government savings S9? $ (Enter your answer as an integer. Include a minus sign if necessary.) (Enter your answer as an integer. Include a minus sign if necessary.) (Enter your answer as an integer. Include a minus sign if necessary.) In this closed economy, what must be the value of investment expenditure? $When the average propensity to save (APS) is 0.35, then this means people are spending 35 percent of their disposable income. people are spending 65 percent of their disposable income. people are saving $0.65 of the last dollar earned. people are spending 35 percent of their disposable income and investing the remaining 65 percent.Which of the following equations is correct for an economy that does not have a government or a foreign sector? Multiple Choice MPC × MPS = 1 MPC/MPS = 1 MPC - MPS = 1 MPC + MPS = 1
- A nation's potential output/GDP is best described as: The maximum level of output/GDP which can be produced with a nation's resources. The maximum growth rate of output/GDP a nation can sustain by keeping both taxes and interest rates low. The maximum growth rate of output/GDP a nation can sustain by keeping interest rates low. The maximum growth rate of output/GDP a nation can sustain by keeping taxes low. A high-employment level of output/GDP.Assume that GDP (Y) = 5,000 Consumption: C = 1,300+(0.4(Y-T)) - 240 r; where r is the real interest rate. Investment (1) is: /= 1,800 - 240 r, Taxes (7): T=250 Government spending (G): G= 1,800 a. What are the equilibrium values of C, Number I, Number and r Number b. What are the values of private saving Number public saving, Number and national saving Number(a) Assume that Gross Domestic Product (GDP)/Total output (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y – T) where T is the tax. Investment (I) is given by the equation I = 2,000 – 100r, where r is the real rate of interest, in percent. Taxes (T) are 500, and government spending (G) is also 500. What are the equilibrium values of C, I, and r?
- Which of the following best describes the catch-up effect? Question 14 options: It is easier for a country to grow fast and "catch up" with richer countries if it starts out relatively poor. Saving will always "catch up" with investment spending. If investment spending is low, increased saving will help investment to "catch up." Rich countries aid relatively poor countries so as to help them "catch up."An open economy presents the following data. The intercept of the consumption function is 4700.The marginal propensity to save (MPS) is 0.20.There are no tax collections in this economy.Government expenditure is 10,000.Autonomous investment is 6,000.The marginal propensity to invest is 0.12.Autonomous exports are 5,000.Autonomous imports are 3,000.The marginal propensity to import is 0.1.Using this information, answer the following four parts. Calculate the equilibrium level of GDP.Calculate the multiplier in this economy.Now suppose that the MPS changes to 0.15. Calculate the new multiplier in this economy.Given the change in the MPS to 0.15, calculate the new equilibrium level of GDPTrue or False: To economists, investment means buying stocks and bonds. True False