Consider the following data (in billion $) for a country in a particular year: (assume this country has Zero Transfer Payment Personal consumption expenditure (C) 200 Exports (x) 10 Government Purchases of goods and services (G) 120 Imports (m) 15 Gross Domestic Product (Y) 1800 Taxes 20 g.      Dose the government has deficit, balance or surplus budget? h.      What is the amount of investment financed by national saving? i.       What is the amount of investment financed by borrowing from rest of the

Q: a. Private saving is : $ ___Trillion   b. Investment Spending is : $___Trillion   c. Transfer…

A: In closed economy, there is neither export not import.  At equilibrium,  Y = C + I + G  National…

Q: Consider the following data for a closed economy: Y = $12 trillion C = $7 trillion |= $2 trillion TR…

A: GDP measures the value of all final goods and services produced in a domestic boundary, in a…

Q: (Figure: The Market for Loanable Funds III) Use Figure: The Market for Loanable Funds III. Suppose…

A: The market of loanable funds represents the interaction between the lenders and borrowers in the…

Q: 2. Assume that gross private domestic investment is $800 billion and the government (state, local,…

A: * SOLUTION :-  (2)

Q: Use the orange line (square point) to graph the new supply of loanable funds as a result of this…

A: The neoclassical theory of interest, often known as the loanable funds theory of interest, was…

Q: Question 3 a. In a closed economy, GDP is $195,000, consumption is $120,000, private saving amounts…

A:

Q: Suppose the market for loanable funds is in equilibrium. Given the numbers below, determine the…

A: The loanable funds model is an economic concept that describes the market interaction between the…

Q: National savings is calculated as the sum of private and public savings. Private savings is equal to…

A: GDP is the market value of final goods and services produced by an economy during a given period of…

Q: 9. Problems and Applications Q9 Investment can be increased both by reducing taxes on private saving…

A: An investment is defined as the purchase of goods that are not consumed today but generate wealth in…

Q: :55 Suppose that every additional 3 percentage points in the investment rate boosts GDP growth by 1…

A: The given information is:Every additional 3 percentage points in the investment rate boosts GDP…

Q: 4. Consider the long-run theory of investment, saving, and growth. Which of the following statements…

A: In the long term, a rise within the demand for investment pushes up the charge per unit and…

Q: Consider this information for Saudi Arabia on 2018; GDP (Y) is 2,631 Billion SAR, Consumption (C) is…

A: National savings is the difference between the GDP and the consumption and government expenditures.…

Q: Consider an economy in which GDP is $30 billion. Tax revenue is $7 billion, consumption is $15…

A: Given information: GDP (Y) is $30 billion Tax revenue (T) is $7 billion Consumption (C) is $15…

Q: A national newspaper’s headline reads “Business Confidence Reaches Highest Level in 5 Years.” (a)…

A: In economics, the loanable funds notion is a market interest rate theory. According to this…

Q: a. Show the national income identity equation for a closed economy. b. Use the expression in a to…

A: Answer: (a). Closed economy: A economy that is not open to trade is called a closed economy. The…

Q: Suppose the following information describes the economy: Consumption 8,000 Investment 1,000…

A: Given:Consumption (C): 8,000Investment (I): 1,000Government purchases (G): 1,000Net exports…

Q: Assume the United States Personal Savings equals zero. Using national income accounting concepts,…

A: As given in the question that the country U's personal savings is equal to zero.  National Income…

Q: se the following diagram to answer this question he accompanying graph shows the market for loanable…

A: The equilibrium interest rate is determined where the demand and supply of loanable funds are equal.

Q: a. What is the level of private saving? 95 billion dollars b. What is the level of public saving? -…

A: Real GDP equals potential GDP. (  amount in billion dollars)Potential GDP…

Q: The Bureau of Economic Analysis reported that the U.S. capital stock was $31.4 trillion at the end…

A: "Net investment represents the change in the capital stock and gross investment represents the total…

Q: 42. Suppose a closed economy had public saving of −$6 trillion and private saving of $15 trillion.…

A: National Savings is the sum of public as well as private savings.  Given : Public Saving = -$6…

Q: Use Figure: The Market for Loanable Funds with Government Borrowing. After an increase in government…

A: The market for loanable funds:Loanable funds are those funds that are borrowed at an interest rate.…

Q: EqUil rate= 17% , borrowing by 171 million at old interest rate 15%. compared to value 151 million…

A: Government deficit is referred to be a situation whereby the government expenses are more than its…

Q: Which of the following is more likely to be effective in increasing the growth rate of real GDP?…

A: Aggregate demand is the sum of consumption, investment, government spending and net export.  The…

Q: at is the value of net export? ne country lending to or borrowing from rest of the world? e the…

A:

Q: 3. deficits. The federal government in the United States has been running large budget (a) Use the…

A: Loanable funds Theory: The loanable fund's concept is an interest rate market paradigm. This method…

Q: Suppose that in a closed economy GDP is equal to 15,000, government purchases are equal to 3,000,…

A: GDP = 15,000 GOVERNMENT PURCHASE = 3000 Consumption = 10,500 Taxes = 3500

Q: Suppose that Consumption = $260 billion, Net Investment = $20 billion, Depreciation = $60 billion,…

A:

Q: , unofficial financial If the country's GDP is $2300, private saving is $200, net exports are…

A: To determine the value of net exports, we can make use of the national saving and investment…

Q: Suppose GDP in this country is $470 million. Enter the amount for investment. National Income…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: 6. Suppose that investment is fixed, as in Chapter 3. The paradox of saving suggests (increase? that…

A: We use the following formulas to get answers: Government deficit = Government expenditure -…

Q: Suppose GDP equals $300 trillion, consumption equals $24 trillion, the government spends $3 trilNon…

A: A country's national savings is the total of its domestic savings by household and companies…

Q: Consider an  the following equations:                                     Y=C + I +G…

A: First compute the value of consumption C = 150 + 0.75(Y-T) => C = 150 + 0.75 (7000 - 2000) =>…

Q: The following national accounting data are available for an economy for 2020. GDP Household…

A: National savings is the total savings of an economy which includes the savings of households,…

Q: Consider the following data (in billion $) for a country in a particular year: (assume this country…

A: It is common to include GDP as part of a government subsidy or lifestyle in a country. When…

Q: Suppose the GDP of a country with a closed economy is $22 trillion, (net) taxes are $4.2 trillion,…

A: GDP is the market value of final goods and services produced within an economy in a given period of…

Q: ..

A: To determine the consumption, government purchases, national saving, and investment in a closed…

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.