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.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question Please select the correct term for each statement below. National savings, budget deficit, capital, inflow, budget, surplus, and budget balance a. the difference between the amount the government collects and how much it spend. b. when government savigns are combined with all of the privately-held savings from across the country. c. the result when the government spends more money than it takes in through taxes. d. the net amount of funds coming into a country. e. when the government spends less money than it takes in through taxes.
Based on this model, the budget deficit leads to in the level of investment and in the interest rate. Which of the following arguments might a supporter of a balanced budget make in defense of their position? Check all that apply. An individual's share of the government debt represents only a small portion of his or her lifetime earnings. Budget deficits decrease national saving. Budget deficits increase national saving. Budget deficits place a burden on future taxpayers. Supporters of a balanced budget claim that the government's budget deficit cannot grow forever, but critics believe that this is not necessarily true. They argue that what matters is the size of debt relative to national income. For example, suppose that real output in the United States grows at approximately 6%. If the inflation rate is 3% per year, this means that nominal income must be growing at a rate of % per year. Because nominal income grows over time, the nation's ability to pay back the national debt than…
58. Consider the long-run theory of investment, saving, and growth. Suppose the government has a budget deficit of $600. If the country's level of national saving is $200, then private saving must be $400. $200. $800. -$400. $600.
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41. Suppose that government institutes an investment tax credit and such policy generates an increase in the government budget deficit. This would: a. shift the saving curve (i.e. supply of loanable funds) to the left. b. cause the real interest rate to fall.
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Question 1 An economy producers 1,000,000 automobiles valued at $15,000 each.Of these, 700,000 are sold to consumers, 200,000 are sold to business, 50,000 are to the government and 25,000 are sold abroad. No automobiles are imported. The automobiles left unsold will be held in inventory by the auto procedures. Compute 1) The total consumption 2) The total investment 3) 3) the total government purchases 4) The total net exports 5) The gross domestics products (GDP) at market value
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