Briefly explain what a change in any part of the national saving and investment identity points out.

Briefly explain any one component of the capital account

provides some hypothetical data on macroeconomicaccountsforthreecountriesrepresented by A, B, and C and measured in billions of currency units. In Table, private household saving is SH, tax revenue is T, government spending is G, and investment spending is I. a. Calculate the trade balance and the net inflow of foreign saving for each country. b. State whether each one has a trade surplus or deficit (or balanced trade). c. State whether each is a net lender or borrower internationally and explain.

The following figure shows the demand and supply curve for capital market. Find the price of capital, output of capital, depreciation value, net investment value and capital growth at the level of capital market equilibrium. Price of Capital SK SK + SK P1 P2 DK + dk P3 DK Pm Quantity of Сapital KI K2 K3 K4

A circular flow diagram: A. is shows the link between government spending and investment B. it shows how government and firms are connected through factor and government markets C. show how firms and households are connected through product and factor markets D. it shows foreign exchange markets

Suppose a country experiences symptoms of the Dutch Disease. Which of the following policies could help to protect the economy? O Discouraging high rates of saving O Helping particular companies or industries

Suppose the government of a small open economy decides to increase taxes on all gross incomes, describe what will happen to public saving assuming all other things remain constant. a.Public saving will not be affected b.Public saving will decrease c.National saving will increase d.Public saving will increase

If there is no trade deficit, budget deficit =$500, what is the difference between savings and planned investment in equilibrium?

2. For the following scenario, draw a correctly labeled loanable funds graph for each nation and explain the direction of financial capital between nations. Then determine which nation will have a higher rate of investment in physical capital. A. The real interest rate in France is 5% while the real interest rate in the United States is 2%.