Suppose the nominal rate of interest on a savings account is 15%, the real rate of interest is 3%, and the tax rate on nominal interest is 20%. Which of the following is true? OA saver would lose 9% real interest. OA saver would neither gain nor lose real interest. A saver would earn 12% real interest. A saver would earn 2.4% real interest.

Harper is a short-lived human who only lives for two years: current year and next year. In the current year, Harper has an income of $189 and has to pay $36 in taxes. Harper expects that he can receive an income of $132 and has to pay $27 in taxes next year before he dies. The real interest rate between current and next year is 7%.  What is Harper's lifetime wealth (in $)? Round your answer to at least 2 decimal places

please answer part 3

Suppose real GDP is $5,136 billion, taxes collected by the government are $535 billion, government spending is $656 billion, and consumption spending is $3,893 billion. What is the value of private saving?

Assume an economy with 1000 consumers. Each consumer has income in the current period of 50 units and future income of 60 units, and pays a lump-sum tax of 10 in the current period and 20 in the future period. The market real interest rate is 8%. Of the 1000 consumers, 500 consume 60 units in the future, while 500 consume 20 units in the future. a) Determine each consumer's current consumption and current saving. b) Determine aggregate private saving, aggregate consumption in each period, government spending in the current and future periods, the current-period government deficit, of the quantity of debt issued by the government in the current period. c) Suppose that current taxes increase to 15 for each consumer. Repeat parts (a) and (b) and explain your results.

On January 1, 2016, Sophie's Internet Cafe owned 10 computer terminals valued at $8,000. During 2016, Sophie's bought 5 new computer terminals at a cost of $1,250 each, and at the end of the year, the market value of all of Sophie's computer terminals was $9,000. What was Sophie's gross investment, net investment, and depreciation? Sophie's gross investment during 2016 was S

Cindy takes a summer job and earns an after-tax income of $5,000. Her living expenses during the summer were $1,000. What was Cindy's saving during the summer and the change, if any, in her wealth? >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. Cindy's saving during the summer is $

1. Suppose you are given the following data: Government Purchases $ 6.0 billion Imports $ 0.3 billion Transfer Payments $ 2.3 billion Consumption $11.9 billion Depreciation $ 2.2 billion Exports $ 0.5 billion Investment $ 3.7 billion Taxes $ 6.4 billion a) Calculate the value of government public savings. b) Calculate the value of household private savings. (

The graph below represents the market for loanable funds for an economy. Use the graph to answer the following questions. real interest rate 6% 51000 Loanable fund $ Assume there currently is a surplus in the market for loanable funds. The current real interest rate is I Select) the equilibrium real interest rate. As the market moves to the equilibrium real interest rate we expect I Select ] Demand for loanable funds comes from the activities of ISelect) 13

Macmillan Learning U The graph depicts the market for loanable funds. Shift the appropriate curves to indicate what will happen to the market if there is an improvement in the technology firms use in production. As a result of this change, the real interest rate is now % Real interest rate 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 and the quantity of funds is $ billion. 0.5 Supply Demand 0.0 0 5 10 15 20 25 30 35 40 45 50 Loanable funds (in billions)