Household saving = $200, Business Saving = $400, Government Purchases = $100, Government transfer & interest payments = $100, tax revenue = $150, GDP = $2,200. What is the National savings rate? a.) 100% b.) 75% c.) 50% d.) 25%

Depreciation equals ________. a. capital minus gross investment b. capital minus net investment c. net investment minus gross investment d. gross investment minus net investment

28. What is the level of investment, I? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion. The next two questions involve the following information. The real interest rate, r, is the nominal interest rate, i, minus inflation, 7. In formal terms, r = i- T. For example, if an investment offers an annual return of 5 percent, and inflation is 2 percent, then the real interest rate is 3 percent. 29. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the nominal yield on the bond? (A) 6 percent. (В) 8.5 рercent. (C) 10 percent. (D) 12.5 percent. 30. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the real coupon rate on the bond? (A) 6 percent. (В) 8.5 percent. (C) 10 percent. (D) 12.5 percent.

Suppose the government must increase taxes in order to increase spending.  Now assume Congress wants to increase spending on education without decreasing spending somewhere else.    For each variable state if it will INCREASE, DECREASE or REMAIN UNCHANGED.   In at least one complete sentence state WHY this change will occur.  Be specific.   Private Saving (Sp): Consumption: (C) Government Saving (Sg) Total Saving: (S) Real Interest Rates: (r) Investment: (I)