nt spending

Q: Explain the difference between the stock variable and a flow variable in economics with one example…

A: According to the given question While analysing in general the economic problems the economics uses…

Q: Define the concept of rate of return on investment?

A: Rate of return on investment measures the net gain or loss of an investment over a period of time.…

Q: each type of investment.

A: 1. Stocks: The efficient market hypothesis (EMH), which contends that stock prices consistently…

Q: Looking at business fixed investment, elaborate on why investment is negatively related to the…

A: Investments are negatively related rate of interest.

Q: Does the amount of government spending in an economy respond directly to changes in aggregate…

A: The instruments of fiscal policy are government taxation and spending. To accomplish different…

Q: why increasing government expenditure causes interest rate to rise?

A: Government expenditure is the expenditure by the government to the national economy. Example of the…

Q: When economists say “investment,” they are referring to financial investments, which are purely…

A: The bonds and stocks are the financial asset that gives the return to the investors. It is a way of…

Q: How do changes in interest rates impact consumer spending, investment decisions, and overall…

A: Interest rate stands for a percentage which is being paid by a borrower to a lender for the…

Q: Is it possible for total saving to fall when people become more thirfty?

A: Answer: The paradox of Thrift was introduced by J.M.Keynes, this theory explains when individuals…

Q: Classify each of the following scenarios listed in the table below using the macroeconomic…

A: The objective of the question is to classify the given scenarios into either saving or investment…

Q: would bonds still be a good option for investment if interest rates are negative?

A: Negative-yielding bonds are monetary instruments that cause buyers to lose cash.  They are typically…

Q: Explain the meaning of comprehensive income and show how a tax on interest income influence people…

A: What is Comprehensive Income?  Comprehensive income is the variety in an organization's net…

Q: ay

A: The theory that shows how an individual seeks to smoothen his or her consumption over their lifetime…

Q: Disposable Income 35,000 MPC Consumption Savings .9 35,000 .7 55,000 .8 55,000 1

A: The marginal propensity to consume (MPC) measures the change in consumption when the disposable…

Q: Explain how changes in interest rates and rates of return on various investment options will affect…

A: Explain how changes in interest rates and rates of return on various investment options will affect…

Q: Which type of investment is called a mixed investment?

A: Investment refers to the purchase of an asset that entails greater payoff in the form of increased…

Q: Explain what happens to savings, investment and the real interest rate in an economy if the…

A: Government expenditure is basically the amount of money that is spent by the government on…

Q: According to the life-cycle income hypothesis, if the retirement age increases but life expectancy…

A: The life-cycle hypothesis is an economic concept how people spend and save money throughout the…

Q: Explain and compare the following terms: Saving intensity and break-even investment intensity.

A: In economics, saving is defined as the process a specific percentage of the annual income, which is…

Q: Briefly explain the yearly rate-of-return method that policyowners can use to determine the rate of…

A: A profit from an investment is referred to as a return. It includes any change in the investment's…

Q: Please help with the following economic question : Explain the relationship between Investment…

A: Changes in the current interest rate have an impact on the amount of investment in the economy.…

Q: will a reduction in the real interest rate increase investment spending, other things equal? Why is…

A: ‘Real interest rate(r)’ is referred to a rate that is adjusted to eliminate the inflation effect.…

Q: What would happen to the amount of economic investment made today if firms expect the future returns…

A: Economic investments are investments that are made with the goal of increasing the productive…

Q: In Classical theory, Saving may increase due to decrease in Interest Rate

A: Classical economists tend to maintain that the economy is always capable to achieve the natural…

Q: theories to explain each type of investment.

A: A financial commitment to an asset with the goal of generating more revenue or profit is referred to…

Q: How does a decrease in interest rates typically affect consumer spending and investment? A. Consumer…

A: Interest rates are a vital piece of the economy, influencing different aspects of financial…

Q: Explain, why is reducing the interest rate not necessarily enough to stimulate investment spending?

A: The money used by firms and businesses to buy capital equipments and tools to increase production…

Q: Explain/Discuss Three ways that a reduced rate of interest influences real capital investment.

A: Real capital investment is the sum of money which is given to a company to achieve it business…

Q: Looking at business fixed investment, explain why investment is negatively related to the interest…

A: An asset or object purchased with the intention of producing income or appreciation is referred to…

Q: If net personal taxes rise, what happens to private saving ? Public saving ?

A: In an economy, taxes refers to the expenditure by the people and revenue of the government because…

Q: Please explain the impact of a change in the savings rate on the output

A: - In an economy, the individuals or groups either save or consume from their income. Savings and…