You observe a closed economy that has a government deficit and positive investment. Which of the following is correct? Select one: a. Both private saving and public saving are negative. b. Private and public saving are both positive. c. Private saving is negative; public saving is positive. d. Private saving is positive; public saving is negative

You observe a closed economy that has a government deficit and positive investment. Which of the following is correct? Select one: a. Both private saving and public saving are negative. b. Private and public saving are both positive. c. Private saving is negative; public saving is positive. d. Private saving is positive; public saving is negative

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 9PA

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Similar questions

Consider an economy in which GDP is $30 billion. Tax revenue is $7 billion, consumption is $15 billion, and the government has a budget surplus of $2 billion. Show your work in each of the following questions.(c) What is national saving?(d) What is the level of investment?
For an imaginary closed economy, T = $5,000; S = $11,000; C = $50,000; and the government is running a budget deficit of $1,000. Then Select one: a. Private saving = $10,000 and GDP = $54,000. b. Private saving = $12,000 and GDP = $72,000. c. Private saving = $10,000 and GDP = $58,000. d. Private saving = $12,000 and GDP = $67,000.
Which of the following statements is correct? A.the total income in the economy that remains after paying for consumption and government purchases is called private saving. B.the sum of private saving and national saving is called public saving. C.for a closed economy, the sum of private saving and public saving must equal investment. D.for a closed economy, the sum of consumption, national saving, and taxes must equal GDP.
QUESTION 11 What does (Y - T-C) represent in a closed economy? a. national saving b. private saving С. public saving d. government tax revenue a C QUESTION 12 For an imaginary closed economy, T = $12,000; S = $22,000;C = $90,000; and the government is running a budget surplus of $4,000. Then %3D %3D private saving = $20,000 and GDP = $110,000. a. %3D %3D private saving = $18,000 and GDP = $120,000. private saving = $20,000 and GDP = $126,000. private saving = $24,000 and GDP = $138,000. b. %3D С. %3D d. %3D a b. Sa
3. In a economy, consumption is 40, public sector spending is 22, investment is 15, net exports are -3. The treasury is running a $6 budget deficit. Which fraction of their disposable income are households saving? Enter your answer in decimals, not percents. 3a .What was the private saving equal to? 3b. How much of the savings was spend to finance the public sector? 3c. What was the external saving, that is, how much did the people's claims on foreign assets grow?
Suppose the GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. assuming this economy is closed, calculate consumption, government purchases national saving, and investment. b. imagine that government start with a balanced budget and then, because of an increase in taxes, start running a budget surplus. graphically analyze the effects of the budget surplus on interest rate, saving and investment if loanable funds means the flow of resources available from private saving
Consider an economy in which GDP is $30 billion. Tax revenue is $7 billion, consumption is $15 billion, and the government has a budget surplus of $2 billion. Show your work in each of the following questions. (a) What is the level of government spending?(b) What is private saving?
Currently, the US has a total consumption of $12 trillion, saving of $6 trillion, tax revenues of $5 trillion, and government spending of $7 trillion. Relative to a balanced budget, the government’s actions in this economy will cause: a. Higher interest rates today and reduced economic growth for future generations. b. Lower interest rates today and reduced economic growth for future generations. c. Higher interest rates today and enhanced economic growth for future generations. d. Lower interest rates today and enhanced economic growth for future generations.
According to the Ricardian equivalence theorem, what is the effect of government deficits on private saving? A. Government deficits increase private saving B. Government deficits decrease private saving C. Government deficits have no effect on private saving D. Government deficits only affect public saving
OR b. Suppose GDP equals $10 trillion, consumption equals $6 trillion, the government spends $2 trillion and has a budget deficit of $500 billion. Given the above, find the following: public saving, taxes, private saving, national saving, and investment. Show your work!
Most entrepreneurs do not have enough money of their own to start their businesses. When they acquire the necessary funds from someone else, Select one: a. Their saving is being financed by someone else’s investment. b. Their investments are being financed by someone else’s saving. c.Their consumption expenditures are being financed by someone else’s saving. d.Their consumption expenditures are being financed by someone else’s investment.
13. The Net federal government saving (budget deficit) for the 4th quarter of 2019 is:$______ billions. 14. The Net federal government saving (budget deficit) for the 4th quarter of 2017 is: $______ billions. 15. The change in the Personal current taxes from 4th quarter of 2017 to the 4th quarter of 2019 is: ______ billions. 16. he change in the Net federal government saving (budget deficit), from 4th quarter of 2017 to the 4th quarter of 2019 is: ______ billions.