ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:23. Private savings is equal to:
a. disposable income less taxes.
b. disposable income less consumption.
c. wealth.
d. wealth plus government transfer payments.
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- One of the benefits financial capital markets offer savers is the opportunity to earn income. a. Savers earn income in the form of purchasing b. Savers earn income in the form of through partial ownership of a corporations that they acquire by by lending money to corporations when they purchasearrow_forward1. Investment is a determining factor of GDP. A decrease in the supply of available funds (i.e. a decrease in the supply of savings) is predicted to? a. Decrease interest rates, decrease investment towards physical capital and hence decrease GDP. b. Increase interest rates, increase investment towards physical capital and hence decrease GDP. c. Decrease interest rates, decrease investment towards physical capital and hence increase GDP. d. Increase interest rates, decrease investment towards physical capital and hence decrease GDP.arrow_forward5. The economy of a country is a three-sector economy. Its public consumption follows the function: C 400+ 0.8Yd. Realized investment reached IDR 250 trillion, government spending amounted to IDR 700 trillion, transfer payments to the public amounted to IDR 100 trillion and tax revenues amounted to IDR 300 trillion. Determine: a. Equilibrium national income b. Balance consumption c. Savings balance Please solve subparts a,b,c thank uarrow_forward
- 3. If at a given real interest rate desired national saving is $120 billion, domestic investment is $84 billion, and net capital outflow is $56 billion, then at that real interest rate in the loanable funds market there is a a. surplus. The real interest rate will fall. b. shortage. The real interest rate will fall. c. shortage. The real interest rate will rise. d. surplus. The real interest rate will rise.arrow_forwardNonearrow_forward1. Suppose you are given the following data: Government Purchases $ 6.0 billion Imports $ 0.3 billion Transfer Payments $ 2.3 billion Consumption $11.9 billion Depreciation $ 2.2 billion Exports $ 0.5 billion Investment $ 3.7 billion Taxes $ 6.4 billion a) Calculate the value of government public savings. b) Calculate the value of household private savings. (arrow_forward
- Interest Rate% 12% 10% 8% 6% 4% 2% 0 5 10 15 20 25 30 35 40 45 50 Supply of Savings Select one: a. The economic dips into a recession and firms see profits fall b. Firms become more optimistic about their expected profits c. An increase in business taxes d. A decrease in household wealth Quantity of loanable funds (billions) Refer to the graph above. Which of the following would cause interest rates to increase? Ti Demand for Borrowingarrow_forwardQuestion 1 An economy producers 1,000,000 automobiles valued at $15,000 each.Of these, 700,000 are sold to consumers, 200,000 are sold to business, 50,000 are to the government and 25,000 are sold abroad. No automobiles are imported. The automobiles left unsold will be held in inventory by the auto procedures. Compute 1) The total consumption 2) The total investment 3) 3) the total government purchases 4) The total net exports 5) The gross domestics products (GDP) at market valuearrow_forwardDraw a graph with the quantity of money on the horizontal axis and the interest rate on the vertical axis. Initially, the money supply curve is vertical because its determined by the Fed. The demand for money curve slopes downward, indicating the negative relationship between the interest rate and the quantity of money demanded.arrow_forward
- 8 Demand, Supply 7 10 4 REAL INTEREST RATE (Percent) 3 2 - 10 20 30 40 50 60 70 80 QUANTITY OF LOANABLE FUNDS (Billions of dollars) Refer to Figure 33-1. If the real interest rate is 3 percent, the quantity of loanable funds demanded is $50 billion, and the quantity supplied is $30 billion. $20 billion, and the quantity supplied is $60 billion. $50 billion, and the quantity supplied is $60 billion. $30 billion, and the quantity supplied is $50 billion.arrow_forward60)In the Table below, what is the value of saving? Disposable Income Consumption Saving $11,400 $7,500 ? Select one: a. 18,900 b. 3,900 c. Cannot be calculatedarrow_forward
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