ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Because of the relationship between net capital outflow and net exports, the level of net capital outflow at the equilibrium real interest rate implies that the economy is experiencing (Balanced trade/ a trade deficit/ a trade surplus) Now, suppose the government is experiencing a budget deficit. This means that ( National saving will increase/ national saving will decrease/ Domestic investment will increase / domestic investment will decrease) which leads to ( an increase in the supply of / a decrease in the supply of / an increase in the demand for/ a decrease in the demand for) loanable funds. After the budget deficit occurs, suppose the new equilibrium real interest rate is 6%. The following graph shows the demand curve in the foreign-currency exchange market. Use the green line (triangle symbol) to show the supply curve in this market before the budget deficit. Then use the purple line (diamond symbol) to show the supply curve after the budget deficit. Summarize the…arrow_forwardSolution all part Very fast solution sent me and I give u thumarrow_forwardQuestion - , unofficial financial If the country's GDP is $2300, private saving is $200, net exports are account is $300, net transfers are -$100, primary budget deficit is $450, then investment is equal to $100.arrow_forward
- For upvote solve in one hourarrow_forwardSuppose that consumption is $2,800, investment is $500, and government spending is $600. The economy is closed so there are no net exports. Taxes are $450. Based on this information: National saving is $ Private saving is $ Government (public) saving is $ Enter whole numbers. « Previous Next ASUS 15 8arrow_forwardAn open economy with absolute mobility of capital is described as follows: consumption function is given as C = 50 + 0, 8(Y -T), where Y is output, andT is net taxes. Investment function is given as I = 20-10i, where I is nominal interest rate. Government spending G = 20, tax Tx = 10, export Ex = 6E + 10, import Im = 22-4E+0, 3Y where E- nominal exchange rate (price of foreign currency in terms of domestic currency). For one unit of foreign currency, you can get 3 units of domestic currency. The real money supply is M /P= 50. The demand for real money is described by the following function: L(Y,i) = 0, 5Y-10i. Suppose that the nominal exchange rate is fixed. The government has increased government spending by 10. What is the level of the exchange rate in the new external and internal equilibrium?arrow_forward
- or An economy is currently at it's steady state. Their depreciation rate is 6% and their capital stock is 1,830. What will be their level of investment? Do not round until your final answer, when you may round to two decimal places. Country A produces GDP according to the following equation: GDP = 5√K and has a capital stock of 10,351. If the country devotes 11% of its GDP to producing or repairing investment goods, how much is this country currently investing? Rounds your answer to two decimal places.arrow_forwardIf a country is experiencing a budget deficit and the government reduced spending, resulting in a balanced budget. How a country’s shift from budget deficit to balanced budget would affect its investments, economic growth, net capital outflow and currency exchange rate? Use diagrams where necessary?arrow_forwardEe 365.arrow_forward
- Graphs and questions in images. Thank you!arrow_forwardAn open economy with absolute mobility of capital is described as follows: consumption function is given as C = 50 + 0, 8(Y T), where Y is output, andT is net taxes. Investment function is given as I = 20–10i, where I is nominal interest rate. Government spending G = 20, taxTr = 10, export Ex = 6E+ 10, import Im= 22-4E+0, 3Y where E - nominal exchange rate (price of foreign currency in terms of domestic currency). For one unit of foreign currency, you can get 3 units of domestic currency. The real money supply is M /P=50. The demand for real money is described by the following function: L(Y, i) = 0, 5Y-10i. Find IS curve in the form Y=a-bi+cE, where a,b,c are constants. Type in the answer these constants with spaces and commas between them, that is: a, b, c.arrow_forwardIt is known that the economic data of a country is as follows: Y=C+I+G+NX, C=800+0.8(Yd), I=300-100r, G=2750, T=2900, NX=1500-600r a. Question: The balance of national income closed Economics and open economics, national saving, State Budget If r=10% b. If state spending increases by 150 from before, the question is the same as (a)arrow_forward
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