EBK BRIEF PRINCIPLES OF MACROECONOMICS
7th Edition
ISBN: 8220100469886
Author: Mankiw
Publisher: Cengage Learning US
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Chapter 18, Problem 8PA
To determine
Consumption versus saving.
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Economics
Consider the following data for country B, an open economy, for this year:
Y = $14 trillion
C = $6 trillion
G = $2 trillion
NX = $3 trillion
T = $4 trillion
TR = $0.5 trillion
a) Find country B’s domestic investment.
b) Find country B’s private saving.
c) Find country B’s public saving.
d) Find country A’s national saving.
e) Find country B’s net foreign investment
Chapter 18 Solutions
EBK BRIEF PRINCIPLES OF MACROECONOMICS
Ch. 18.1 - Prob. 1QQCh. 18.2 - Prob. 2QQCh. 18.3 - Prob. 3QQCh. 18.4 - Prob. 4QQCh. 18.5 - Prob. 5QQCh. 18.6 - Prob. 6QQCh. 18 - Prob. 1QCMCCh. 18 - Prob. 2QCMCCh. 18 - Prob. 3QCMCCh. 18 - Prob. 4QCMC
Ch. 18 - Prob. 5QCMCCh. 18 - Prob. 6QCMCCh. 18 - Prob. 1QRCh. 18 - Prob. 2QRCh. 18 - Prob. 3QRCh. 18 - Prob. 4QRCh. 18 - Prob. 5QRCh. 18 - Prob. 6QRCh. 18 - Prob. 7QRCh. 18 - Prob. 8QRCh. 18 - Prob. 9QRCh. 18 - Prob. 10QRCh. 18 - Prob. 1PACh. 18 - Prob. 2PACh. 18 - Prob. 3PACh. 18 - Prob. 4PACh. 18 - Prob. 5PACh. 18 - Prob. 6PACh. 18 - Prob. 7PACh. 18 - Prob. 8PA
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- Economics It would seem that a higher Steady State level of Y/L (y*) and K/L (k*) is a good thing. We know that a high level of "s" leads to a higher Steady State. Show with diagrams why a rate of saving of, say, 80 or 90 percent may not be so good as far as the people in the economy are concerned.arrow_forwardWhy does most countries have different investment priorities?arrow_forwardWhat is an emerging economy? How can countries with emerging economies make use of information technology?arrow_forward
- In an economy the National savings isarrow_forward= 5√K and has a capital Country A produces GDP according to the following equation: GDP stock of 13,399. If the country devotes 13% of its GDP to producing or repairing investment goods, how much is this country currently investing? Rounds your answer to two decimal places.arrow_forwardexplain why it is difficult to set aside funds for investment when you are in povertyarrow_forward
- Assume that a country experiences a permanent increase in its saving rate. Which of the following will occur as a result of this increase in the saving rate?arrow_forwardWhy would removing a trade restriction, such as a tariff, lead to more rapid economic growth? Explain how higher savings leads to a higher standard of living. What might deter a policymaker from trying to raise the rate of saving? What is a budget deficit? How does it affect interest rates, investments and economic growth? How does the financial system coordinate saving and investment? What is the financial system, Name and describe two markets that are part of the financial system in the U.S. economy. Name and describe two financial intermediaries. GDP in 2019 was $21 trillion. Consumption equals $12 trillion. Government spending was $5 trillion. The budget deficit was $600 billion. Why do economists use real GDP rather than nominal GDP to gauge economic well-being? Define "Real" and "Nominal" GDP and explain the differences between them (Real and Nominal GDP). Explain why an economy's income must equal its expenditure.arrow_forwardIn an open economy, why is the supply of loanable funds upward sloping? a) A higher real interest rate discourages domestic consumers from buying foreign assets. b) A lower interest rate makes borrowing more expensive. c) A lower real interest rate encourages people to save. d) A higher real interest rate encourages people to save.arrow_forward
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