ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Can you give me two pros and cons about cashless economy? Also, I need some backgroud information.arrow_forwardWhy is it incorrect/inappropriate to say that governments “invest” the “national savings?”arrow_forwardConsider country D, which is a closed economy. Suppose that D’s investment is 100, disposable income is 500 and the consumption 550. Answer D’s public saving and if government spending G is more than, less than or equal to the tax T. You need to use I = S, S = Private saving + Public saving The definition of private saving Then, you can answer how much is the public saving. Regarding G, remember the definition of public saving. Public saving: G:arrow_forward
- Amid the global pandemic, economic activity in many countries in the world decreased substantially causing a significant reduction in tax revenues. Mexico had a projected a budget deficit of $20 billion dollars. Assume that the government of Mexico borrowed $20 billion more from the market for loanable funds. Answer both parts below assuming that Mexico is a closed economy. a) Use a diagram for the market for loanable funds to analyze this policy. Does the interest rate rise or fall? What happens to investment and national saving? Note: make sure you label your diagram properly. b) Suppose households believe that greater government borrowing today implies higher taxes to pay off the government debt in the future. What does this belief do to private saving and the supply of loanable funds today? Does this change the results you discussed in part (a)? + v В I U A 川、 Paragrapharrow_forwardQ2 2. The Daisy-land's economy is described as follows: Y=C+I+G; Y=10,000; G-2,000; T-3,000; C=2,000+0.5 (Y-T); I=3,000-150r. a. In this economy, compute private saving, public saving, and national saving. b. Find the equilibrium interest rate. c. Now suppose that G is increased by 1,000. Compute private saving, public saving, and national saving.arrow_forwardAnswer a and b a) Discuss briefly the history, legislation, function, remittance of the CMBT (SPK). While writing your answer, focus on its mission and how the Board runs and what it does to achieve the mission.b) In a closed economy, savings and investments are interacted/coordinated. • Who are savers and investors in this closed economy? • How does financial (capital and money) market work? • How does crowding out happen? • Briefly discuss, by using I, S, G, T, X, M, how the scenario change when the economy is OPEN.arrow_forward
- Suppose GDP is Rs.15 trillion, taxes are Rs.5.5 trillion, private saving is Rs.2 trillion, and public saving is Rs. 2.5 trillion. Assuming this economy is closed, Calculate a) Government purchases b) National saving c) Consumption d) If the government increases taxes to 6.5 trillion, calculate private Savingarrow_forwardA nation's potential output/GDP is best described as: The maximum level of output/GDP which can be produced with a nation's resources. The maximum growth rate of output/GDP a nation can sustain by keeping both taxes and interest rates low. The maximum growth rate of output/GDP a nation can sustain by keeping interest rates low. The maximum growth rate of output/GDP a nation can sustain by keeping taxes low. A high-employment level of output/GDP.arrow_forwardRefer to the figure below to answer the following questions. Real interest rate (percent per year) 4 3 2 1 0 15 20 PSLF 25 SLF DLF 30 Loanable funds (billions of 2007 dollars) In the situation above the government has a budget Private saving is $ billion. Investment is $ billion and national saving is $ billion.arrow_forward
- Is savings harmful or beneficial to the economy? Contrast the two views on this issue.arrow_forwardAt an aggregate output level of $400 billion what is aggregate savings?arrow_forwardplease explain the meaning of these terms in research writing Credibility: Transferability: Replicability: Trustworthiness: Positivists: Constructivists: IRB informed consentarrow_forward
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