EqUil rate= 17% , borrowing by 171 million at old interest rate 15%. compared to value 151 million Question 2. Suppose initially the market for loanable funds is in equilibrium with I-S*=300 million. Equilibrium interest rate is 1#%. Other things being the same, assume there is a rise in government borrowing by $1#1 million. At the old interest rate (1#%), what would the amount of national saving (S) equal to? What would happen to the interest rate value once the new equilibrium is reached? (Will it change? How?) By how much, you would think that investment (D), national saving, and private saving might change in the new equilibrium (compared to value SI#1 million), and would it be an increase, decrease, or no change? [Use maximum five sentences to clarify your computations. Type vour answers strictly in the provided space before the next

EqUil rate= 17% , borrowing by 171 million at old interest rate 15%. compared to value 151 million Question 2. Suppose initially the market for loanable funds is in equilibrium with I-S*=300 million. Equilibrium interest rate is 1#%. Other things being the same, assume there is a rise in government borrowing by $1#1 million. At the old interest rate (1#%), what would the amount of national saving (S) equal to? What would happen to the interest rate value once the new equilibrium is reached? (Will it change? How?) By how much, you would think that investment (D), national saving, and private saving might change in the new equilibrium (compared to value SI#1 million), and would it be an increase, decrease, or no change? [Use maximum five sentences to clarify your computations. Type vour answers strictly in the provided space before the next

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider country D, which is a closed economy. Suppose that D’s investment is 100, disposable income is 500 and the consumption 550. Answer D’s public saving and if government spending G is more than, less than or equal to the tax T. You need to use I = S, S = Private saving + Public saving The definition of private saving Then, you can answer how much is the public saving. Regarding G, remember the definition of public saving. Public saving: G:
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Suppose the GDP of a country with a closed economy is $22 trillion, (net) taxes are $4.2 trillion, public saving is $0.8 trillion, and private saving is $1.3 trillion. What are the values of consumption, investment, national saving, and government spending? 1b Is the government of this country running a budget surplus or a deficit?
QUESTION 10 Suppose a new tax bill has just been passed that raises taxes for the majority of people in a country. As a result of the tax increase, explain how interest rates will be affected using the loanable funds theory. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U S Paragraph Arial 14px A v Ix X O 8 OQ x2 X, +, RBC 田用区因

Suppose real GDP is $5,136 billion, taxes collected by the government are $535 billion, government spending is $656 billion, and consumption spending is $3,893 billion. What is the value of private saving?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
4. An economy has government purchases of 1000. Desired national saving and desired investment are given by gd=200+5000r+0.10Y-0.20G jd=1000-4000r When the full-employment level of output equals 5000, calculate the real interest rate that clears the goods market.
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] In the loanable funds market model, assuming everything else is constant, which curve (supply of funds or demand for funds) is affected if there is an increase in national saving? How will equilibrium real interest rate and equilibrium quantity of loans change?
All other things equal, an increase in government borrowing will ________ a. shift the demand curve for loanable funds to the right, increasing interest rates. b. shift the supply curve of loanable funds to the right, decreasing interest rates. c. shift the demand curve for loanable funds to the left, decreasing interest rates. d. shift the supply curve of loanable funds to the left, but interest rates remain unchanged.
A country has a net capital outflow of $700 billion and domestic investment of $120 billion. What is the quantity of loanable funds demanded? A. $700 billion B. $120 billion C. $580 billion D. $820 billion