In an open economy, if domestic citizens decide to save more, then the domestic real interest rate will level of capital investment in the country will. _, holding other factors constant. and the a. decrease; decrease b. increase; increase c. increase; decrease d. decrease; increase
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- If national saving in a closed economy is greater than zero, which of the following must be true? O Y-C-G> 0 Investment is positive. O Either public saving or private saving must be greater than zero. O All of the other answers are correct.1. An increase in expected future output while holding today's output constant would A. increase today's desired consumption and decrease desired national saving. B. decrease today's desired consumption and decrease desired national saving. C. increase today's desired consumption and increase desired national saving. D. decrease today's desired consumption and increase desired national saving.1. The country Egalia has the following production function: Y = 500K^0.25L^0.75, where K denotes the amount of capital and L the amount of labor (which coincides with that of the population size). The number 500 in the production function indicates total factor productivity.
- Suppose that every additional 3 percentage points in the investment rate boosts GDP growth by 1 percentage poi Assume also that all investment must be financed with consumer saving. Note: Investment rate= Investment/GDP The economy is currently characterized by Consumption: $7 trillion Saving (= Investment): $2 trillion = GDP: $9 trillion If the goal is to raise the growth rate by 2 percentage points, a. by how much must investment increase? b. by how much must consumption decline? PLEASE SHOW YOUR WORK. BILLIONS BILLIONSPlease help with this from c and d. Please make it make sense because I have seen answers that dont seem right. With graphs as well if you can for the two.Consider an economy described by the following equations:Y=C + I +GY=7,000G=4000T=2,000C=150+0.75(Y-T)I=1,000-50ra. In this economy, compute private saving, public saving and national saving.b. Calculate the equilibrium interest rate. c. Now suppose the G rises by 1,000. Compute private saving, public saving, andnational saving.d. Calculate the new equilibrium interest rate.3. Calculate the steady state level of investment in an economy with a savings rate of 15%, population growth of -1%, depreciation of 10%, and a= 2/3. Show your work.
- Write out the equation for desired national savings. What changesto desired national saving and desired national consumption happen whengovernment spending increases, funded by an increase in taxes? Why doesconsumption change by less than G?a. If national saving of a closed economy equals$100,000, net taxes equal$125,000,GDPdeflator is 175 and government expenditure equals$45,000, what is private saving?The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Value National Income Account (Millions of dollars) Government Purchases (G) 100 Taxes minus Transfer Payments (T) 90 Consumption (C) 250 120 Investment (I) National Saving in this economy is ○ a. $560 million Ob. $470 million O c. $120 million Od. $90 million
- Current consumption Figure 2-8 A B C Current investment Points A, B, and C in Figure 2-8 2-8.png indicate consumption and investment for three economies. Other things constant, which of the economies is likely to grow less rapidly in the future, but is having the most fun now? economy A O economy B economy C They would all be expected to grow at the same rate.Consider an economy described by the following equations: Y = C + I + G AND, Y = 20,000; G = 4,000; T = 4,000; C = 1000 + 0.80(Y − T); : I= 2,500 – 120r. national saving AND the equilibrium real interest rate equal: Select one: a. national saving 2200 AND the equilibrium real interest rate 2.5%. b. national saving 2500,AND the equilibrium real interest rate 2%. c. national saving 4000 AND the equilibrium real interest rate 1.5%. d. national saving 3200 AND the equilibrium real interest rate 2.5%.country has domestic investment of $200 billion. Its citizens purchase $600 billion of foreign assets and foreign citizens purchase $300 billion of its assets. What is national saving? a. $500 billion b. $400 billion c. $800 billion d. $600 billtion