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 21.3RDE
Sub part (a):
To determine
Savings.
Sub part (b):
To determine
Calculation of total savings.
Sub part (c):
To determine
Government savings.
Sub part (d):
To determine
Loanable fund equilibrium.
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Check out a sample textbook solutionStudents have asked these similar questions
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
- In your notebook explain the quotation.“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffettarrow_forwardUse the analysis for the market for loanable funds diagram to illustrate and explain how the following government policy affects the economy’s saving and investment. Policy 1: Suppose the government starts with a balanced budget and then, because of a tax cut or spending increase, starts running a budget deficit.State, explain and draw the loanable funds diagram for i,ii and iii. (i) which which loanable funds curve would this policy affect?(ii) which way would the loanable funds curve shift?(iii) what would be the the impact on interest rates?arrow_forwarduse the analysis for the market of loanble funds to illustrate and explain how the following government policy affect the economy's savings and investment. Policy 1: Suppose the government changes its tax code allowing individuals to reduce their taxable income if they save money in registered retirement savings plan. a. State and explain which loanable funds curve would this policy affect? b. What would be the impact on interest rates? Draw the loanable funds diagram to illustrate your answers for a to c.arrow_forward
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