MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 8, Problem 13SQ
To determine
The level of income where the savings starts in the economy.
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If personal taxes are cut temporarily, the resulting
a.
increase in personal saving would be larger than if they were cut permanently.
b.
decrease in personal saving would be smaller than if they were cut permanently.
c.
decrease in personal saving would be larger than if they were cut permanently.
d.
increase in personal saving would be smaller than if they were cut permanently
GIVE explanation for the answer
Question 49
a. Identify three government policies that discourage saving.
b. Why do many economists advocate a consumption tax rather than an income tax?
c. Explain howa higher rate of return on saving could, at least in theory, lead to lower saving.
If consumption expenditures are $1800 million, gross investment is $450 million, imports are $350 million, exports are $180 million, government expenditure on goods and services is $120 million, and government transfer payments are $180 million and net taxes are $250 million;
a) Calculate the GDP.
b) Is there budget deficit or surplus? Calculate.
c) How much is the private (household) saving?
Chapter 8 Solutions
MACROECONOMICS FOR TODAY
Ch. 8.4 - Prob. 1YTECh. 8 - Prob. 1SQPCh. 8 - Prob. 2SQPCh. 8 - Prob. 3SQPCh. 8 - Prob. 4SQPCh. 8 - Prob. 5SQPCh. 8 - Prob. 6SQPCh. 8 - Prob. 7SQPCh. 8 - Prob. 8SQPCh. 8 - Prob. 9SQP
Ch. 8 - Prob. 1SQCh. 8 - Prob. 2SQCh. 8 - Prob. 3SQCh. 8 - Prob. 4SQCh. 8 - Prob. 5SQCh. 8 - Prob. 6SQCh. 8 - Prob. 7SQCh. 8 - Prob. 8SQCh. 8 - Prob. 9SQCh. 8 - Prob. 10SQCh. 8 - Prob. 11SQCh. 8 - Prob. 12SQCh. 8 - Prob. 13SQCh. 8 - Prob. 14SQCh. 8 - Prob. 15SQCh. 8 - Prob. 16SQCh. 8 - Prob. 17SQCh. 8 - Prob. 18SQCh. 8 - Prob. 19SQCh. 8 - Prob. 20SQ
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Similar questions
- When someone loses his job and has no income: His consumption becomes negative but his savings become positive. His consumption and savings become negative. His consumption and savings become positive. His consumption becomes positive but his savings becomes negative. A Click Submit to complete this assessment. earch DELLarrow_forwardThe next three questions involve the following situation. Consider a closed economy in which C = $345 billion, G = $350 billion, Y and T = $100 billion. $1 trillion, 26. What is the overall level of saving, S? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion. 27. What is the level of private saving? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion. 9. 28. What is the level of investment, I? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion.arrow_forwardConsider an economy in which GDP is $30 billion. Tax revenue is $7 billion, consumption is $15 billion, and the government has a budget surplus of $2 billion. Show your work in each of the following questions.(c) What is national saving?(d) What is the level of investment?arrow_forward
- Given Table 12-6 below, fill in the values for saving. Assume taxes = $800. Table 12-6 National Income $11,400 11,800 12,200 12,600 Consumption $7,500 7,800 8,100 8,400 Use the editor to format your answer Savingarrow_forwardThe savings rate is a. the difference between gross income and disposable income. b. the ratio of personal income to taxes paid on income. c. the percent reduction in taxes due to permitted deductions. d. personal savings as a percentage of disposable income. e. cash savings as a percentage of total net wortharrow_forwardA reduction in personal income taxes increases Aggregate Demand through a. an increase in private savings. b. an increase in investment spending. c. an increase in personal consumption. d. an increase in national savings.arrow_forward
- Refer to the figure below to answer the following questions. Real interest rate (percent per year) 4 3 2 1 O Private saving is $ PSLF 15 20 25 Loanable funds (billions of 2007 dollars) Investment is $ In the situation above the government has a budget SLF saving is $25 billion. DLF billion. billion and nationalarrow_forward2. Disposable income Group of answer choices increases when net taxes increase. increases when saving decreases. decreases when saving increases. increases when income increases.arrow_forwardIf consumption expenditures are $1800 million, gross investment is $450 million, imports are $350 million, exports are $180 million, government expenditure on goods and services is $120 million, and government transfer payments are $180 million and net taxes are $250 million; a) Calculate the GDP. b) Is there budget deficit or surplus? Calculate. c) How much is the private (household) saving? d) How much is the disposable income?arrow_forward
- GDP is $5 billion this year in a closed economy. Consumption is $3 billion, and government spending is $0.5 billion and taxes are $0.5 billion. How much is private saving? Select one: Oo $4.5 billion Ob 50 billions OC -50.5 billion Od $1.5 billion.arrow_forwardWhich of the following factors will lower down someone’s disposable income? a. More savings b. Low intermediate consumption c. More depreciation d. High personal taxesarrow_forwardIf Evan's income is reduced to zero after he loses his job, his consumption will be ________ and his saving will be ________. a.greater than zero; less than zero b.greater than zero; greater than zero c.less than zero; greater than zero d.less than zero; less than zeroarrow_forward
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