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. OC. increase today's desired consumption and increase desired national saving. OD. decrease today's desired consumption and increase desired national saving.

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?

In a closed economy, if Y and T remained the same, but G rose, and C fell but by less than the rise in G, what would happen to public and national saving?   a. public and national saving would rise   b. public saving would fall and national saving would rise   c. public saving would rise and national saving would fall   d. public and national saving would fall

What do loanable funds finance? What is the source of loanable funds? Loanable funds finance _______.     A. business investment, the government budget surplus, and international borrowing   B. business investment, the government budget deficit, and international investment or lending   C. private saving, the government budget surplus, and international borrowing   D. private saving, the government budget deficit, and international investment or lending

4. Relative to a closed economy, it is easier in an open economy toa. pass the burden of government debt on to future generations.b. control interest rates.c. discourage private investment through government borrowing.d. confer monopoly power on key domestic industries.

Answer These Three Sub Parts i) In an open economy, Y = C + I + G + NX. Using symbols from this identity, write anexpression that defines national saving, S, in an open economy.S = _________________________ .  ii) True or False? In an open economy, the following is always true: S = I + NCO, where I isinvestment spending and NCO is net capital outflow.  iii)  In an open economy, a country’s net capital outflow is:a.) the value of domestic assets purchased by foreigners minus the value of foreign assetspurchased by domestic residentsb.) the value of foreign assets purchased by domestic residents minus the value of domesticassets purchased by foreigners.

A country has domestic investment of $100 billion. Its citizens purchase $500 of foreign assets and foreign citizens purchase $300 of its assets. What is national saving?Answer1. $600 billion2. $300 billion3. $100 billion4. -$100 billion

3. How does each of the following changes affect the real gross domestic product and price level of an open economy in the short run? Explain each. a) An increase in the price of crude oil, an important natural resource. b) A technological change that increases the productivity of labour. c) An increase in spending by consumers. d) The depreciation of the country's currency in the foreign exchange market.

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.

If the GDP per capita grows by 5%, it means that O a. The rich people's incomes increased by 5% © b. On the average, the people's income grew by 5% © c Everyone's income grew by 5% d. Employment rates increased by 5%