Don't use Ai.Answer in step by step with explanation. Actual investment equals saving:a) at all levels of GDP.b)at all below-equilibrium levels of GDP.c) at all above-equilibrium levels of GDP.d) only at the equilibrium GDP.

To solve this question, let's break it down step by step: Step 1Understand the terms "Actual…

Answered: Actual investment equals saving: a) at…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The economy of Ghana has a saving function S= - 100 +0.2Y, investment equal to 66, government expenditure equal to 50, export equal to 20 and an import function of M= 0.1Y. (a). What is the consumption function of the economy (b). What is the aggregate expenditure function of the economy?
Explain why investment (I) varies more from year-to-year than consumption (C).
An economy with no government and no foreign trade tends to move toward equilibrium GDPbecause at output levels greater than equilibrium GDP, inventories are a)increasing, and actual investment exceeds desired investment.b)increasing, and actual investment is less than desired investment.c) decreasing, and actual investment exceeds desired investment.d)decreasing, and actual investment is less than the desired investment.
Economics Economic investment (1) and national savings (S) are related because: i The level of economic investment () is a direct, positive function of the level of national savings (S) L The pool of national savings (S) is the source of funds to finance economic investment (), including expenditure on new capital (K) by fierms iL. The greater is the level of national savings (S) the greater can be the level of economic investment ) OA) i only OB) Liand i I only OD) i only
Hand written solutions are strictly prohibited
True/False An increase in savings implies a decrease in consumption and therefore a decrease in GDP.
true/false explain When savings equals investment, reducing savings and increasing consumption is especially effective in stimulating output.
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During recessions investment falls by a larger percentage than GDP. falls by about the same percentage as GDP. falls by a smaller percentage than GDP. falls but the percentage change is sometimes much larger and sometimes much smaller
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Actual investment equals saving: a) at all levels of GDP. b)at all below-equilibrium levels of GDP. c) at all above-equilibrium levels of GDP. d) only at the equilibrium GDP.