Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 21, Problem 21.2RDE
Sub part (a):
To determine
Gross savings.
Sub part (b):
To determine
Calculation of total savings.
Sub part (c):
To determine
loanable fund market equilibrium .
Sub part (d):
To determine
Change in total savings.
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In each part that follows, use the economic data given to find national saving, private saving, public saving, and the national saving
rate.
a. Household saving = 200
Business saving = 400
Government purchases of goods and services = 120
Government transfers and interest payments = 100
Tax collections = 175 GDP = 2,300
Instructions: Enter your response for the national saving rate rounded to one decimal place. If you are entering any negative numbers,
be sure to include a () In front of those numbers.
National saving
Private saving
Public saving
National saving rate
GOO
b. GDP = 6,050 Tax collections = 1,225
Government transfers and interest payments - 400
Consumption expenditures 4,500
Government budget surplus 100
Instructions: Enter your response for the national saving rate rounded to one decimal place, If you are entering any negative numbers,
be sure to include a () in front of those numbers.
National saving
Private saving
Public savingNational saving rate
100
c Consumption…
Consider the following data (in billion $) for a country in a particular year: (assume this country has Zero Transfer Payment
Personal consumption expenditure (C)
200
Exports (x)
10
Government Purchases of goods and services (G)
120
Imports (m)
15
Gross Domestic Product (Y)
1800
Taxes
20
a. What is the value of private and households saving?
b. What is the value of government saving?
c. What is the value of total (national) saving?
d. What is the value of gross investment?
e. What is the value of net export?
f. Is the country lending to or borrowing from rest of the world?
g. Dose the government has deficit, balance or surplus budget?
h. What is the amount of investment financed by national saving?
i. What is the amount of investment financed by borrowing from rest of the world?
J. What is the meaning of transfer payment
Use the information in the table below to answer the following questions.
GDP
Consumption
Government spending
2,000
1,500
300
400
Net taxes
Please enter your answers as numerical values (ie. 300 or $300 not "Three hundred dollars")
What is the value of Private Savings?
What is the value of Public Savings?
What is the value of National Savings?
Chapter 21 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 21 - Prob. 21.1.1RQCh. 21 - Prob. 21.1.2RQCh. 21 - Prob. 21.1.3RQCh. 21 - Prob. 21.1.4RQCh. 21 - Prob. 21.1.5PACh. 21 - Prob. 21.1.6PACh. 21 - Prob. 21.1.7PACh. 21 - Prob. 21.1.8PACh. 21 - Prob. 21.1.9PACh. 21 - Prob. 21.1.10PA
Ch. 21 - Prob. 21.1.11PACh. 21 - Prob. 21.1.12PACh. 21 - Prob. 21.1.13PACh. 21 - Prob. 21.1.14PACh. 21 - Prob. 21.2.1RQCh. 21 - Prob. 21.2.2RQCh. 21 - Prob. 21.2.3RQCh. 21 - Prob. 21.2.5PACh. 21 - Prob. 21.2.6PACh. 21 - Prob. 21.2.7PACh. 21 - Prob. 21.2.8PACh. 21 - Prob. 21.2.9PACh. 21 - Prob. 21.2.10PACh. 21 - Prob. 21.2.11PACh. 21 - Prob. 21.2.12PACh. 21 - Prob. 21.2.13PACh. 21 - Prob. 21.2.14PACh. 21 - Prob. 21.2.15PACh. 21 - Prob. 21.2.17PACh. 21 - Prob. 21.3.2RQCh. 21 - Prob. 21.3.3RQCh. 21 - Prob. 21.3.4PACh. 21 - Prob. 21.3.5PACh. 21 - Prob. 21.3.6PACh. 21 - Prob. 21.3.7PACh. 21 - Prob. 21.3.8PACh. 21 - Prob. 21.3.9PACh. 21 - Prob. 21.1RDECh. 21 - Prob. 21.2RDECh. 21 - Prob. 21.3RDECh. 21 - Prob. 21.2CTE
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Similar questions
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- The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $800 million. Enter the amount for government purchases. Value National Income Account A (Millions of dollars) Government Purchases (G) Taxes minus Transfer Payments (T) 260 Consumption (C) 300 Investment (I) 300 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S) %24 million Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from IL ||arrow_forward2. Saving and investment in the national income accounts The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $900 million. Enter the amount for government purchases. National Income Account Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (1) National Saving (S) = Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. = Value (Millions of dollars) $ 325 375 275 millionarrow_forwardHow does a decrease in the tax rate on income earned on saving affect saving, investment, the interest rate, and economic growth?arrow_forward
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