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 $45 billion Ob $0 billion OC -105 billion Od $1.5 billion

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 $45 billion Ob $0 billion OC -105 billion Od $1.5 billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: The closed economies of Sokovia and Madripoor want to increase their GDP, so that it reaches 200…

A: Marginal propensity to save refers to the portion of income that one will save instead of consuming.…

Q: Refer to Figure 8.3. For this society, aggregate saving is positive if aggregate income is .above…

A: For this type of society the aggregate savings will be positive when the aggregate income is above…

Q: time lag 33. If an increase in government spending causes an increase in government borrowing, this…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Assume the government cuts spending by Si billion and the marginal propensity to save was 0.1. a.…

A: Gross domestic product (GDP) is the total monetary value, or market value, of finished products and…

Q: 6. Suppose that in a closed economy GDP is equal to 15,000, government purchases are equal to 3,000,…

A: Public Saving is the total amount saved by the government and the entire public sector. If the…

Q: Classify each of the following based on the macroeconomic definitions of saving and investment.…

A: Investment is the purchase of items to facilitate production of final goods and services.

Q: Increases in investment spending cause interest rates to increase. a. Ohouseholds will voluntarily…

A: True, because when the interest rate in the economy increases, the opportunity cost of consumption…

Q: 1g. public sa are they related? Explain it.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 23. Private savings is equal to: a. disposable income less taxes. b. disposable income less…

A: Private saving refers to the portion of income that is not consumed but instead put aside for future…

Q: What would result from a decrease in the supply of national savings curve? a). an increase in the…

A: National Savings is the income earned by the economy after deducting the amount that the government…

Q: 2. is it possible for total saving to fall when people beome more thirfty?

A: Being more thrifty means people are using their money rationally & carefully and they are not…

Q: 1. Explain the difference between public & private saving.

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Refer to Table 25-3. What is the level of private saving for this economy? $2000 $500…

A: The equation for the aggregate output(Y) in the economy is Y=C+I+G(Y-C-T)+(T-G)=I Y: Aggregate…

Q: 9. If disposable income is 4,000, consumption is 3,500, government spending is 1,000, and taxes…

A: Here, given information is, Disposable income (Y): 4,000 Consumption (C): 3,500 Government spending…

Q: Which would be more difficult to forecast 10 years fromnow: the number of 60-year-olds or their…

A: For forecasting, we use past data to predict future data.

Q: Suppose the market for loanable funds is in equilibrium. Given the numbers below, determine the…

A: The loanable funds model is an economic concept that describes the market interaction between the…

Q: 1. Suppose the government borrows $20 million more next year than this year. a. Draw and fully label…

A: Answer: (d). The elasticity of the supply of loanable funds shows that if the interest rate changes…

Q: Suppose GDP is $50,000, tax revenue is $20,000, and government spending is $40,000. What is…

A: Given: GDP=$50000 Tax revenue=$20000 Government spending=$40000

Q: 6. In macroeconomist mind, Explain how they are able to distinguish the terms between investment and…

A: Stock is the ownership certificate of any company owned by shareholders.

Q: The table sets out the data for an economy when the government's budget is belanced. Calculate the…

A: The real interest rate is a situation that is termed as the equilibrium interest rate. It means that…

Q: Consider this information for Saudi Arabia on 2018; GDP (Y) is 2,631 Billion SAR, Consumption (C) is…

A: National savings is the difference between the GDP and the consumption and government expenditures.…

Q: Table 1 All Numbers are in $ Billion Output Consumption CIncome) Spending 400 Net Taxes 100…

A: Saving = Disposable income - Consumption. Disposable income = Income - taxes

Q: Economists define saving as: that part of after-tax income which is not consumed. O bank accounts. O…

A: In economics, income is comprised of consumption and savings. Whatever is not consumed, is treated…

Q: 4. What is a government budget deficit? How does it affect interest rate, investment, and economic…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1. Suppose the government borrows $20 million more next year than this year. a. How does the…

A: In an economy, governement borrowings affects the equilibrium level in the loanable funds market as…

Q: 3.Draw a graph representing a hypothetical economy. Carefully label the two axes, the S + T + IM…

A: Since you have not mentioned which question you require an answer for, as per our standard procedure…

Q: on 10 + O than $ rate (percent per year) DLF 100 200 300 400 500 600 Loanable funds (billions of…

A: Loanable funds refer to the supply of and demand for money available for borrowing and lending in…

Q: slock is $100 trilon household savings is $5 trillion business savings is 5 tilon the net…

A: Total saving is sum total of private saving and public saving or government saving.

Q: Suppose GDP-11 billion, taxes-3 billion, private saving-0.9 billion, and public saving-0.6 billion:…

A: Consumptiin spending=GDP-taxes =11-3=8

Q: Tom's net investment was $15,000, so at the end of 2020, Tom's had capital valued at $45,000 On…

A: Gross investment refers to the total investment done during the year including the value of…

Q: D Question 23 2 pts In a given year, a country's GDP = $10000, net factor payments from abroad =…

A: To determine the private saving in this economy, we use a specific formula that incorporates several…

Q: The government raises taxes by $100 billion. If the marg nal propensity to consume is 0.8. What…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: not use ai please

A: Step 1: The market for loanable money is directly impacted when Moria's exports rise and net exports…

Q: 21. In Italy, firms pay tax on reported profits at a constant proportionate rate t€ (0, 1). If the…

A: The VNM utility theorem states that when a decision-maker is faced with risky preferences, then…

Q: Do not use chatgpt

A: Concepts:Closed Economy: An economy that does not engage in international trade (imports and exports…

Q: GDP Consumer Spending Taxes Minus Transfers Government Purchases. $8.5 trillion $5.2 trillion $1.5…

A: The question's underlying notion is the basic national accounting identity in a closed economy, in…

Q: GDP $7.3 trillion Consumer Spending $5.2 trillion Taxes Minus Transfers $1.1 trillion Government…

A: Private savings can be defined as what the economy saves in an accounting year. Private savings can…

Q: Suppose that in a closed economy GDP is equal to 15,000, government purchases are equal to 3,000,…

A: GDP = 15,000 GOVERNMENT PURCHASE = 3000 Consumption = 10,500 Taxes = 3500

Q: 22. Assume the US is operating in a closed economy and GDP is $20 trillion, consumption is $8…

A: a) "A balanced budget in this economy imply that government spending equates the tax revenue which…

Q: Suppose GDP equals $300 trillion, consumption equals $24 trillion, the government spends $3 trilNon…

A: A country's national savings is the total of its domestic savings by household and companies…

Q: Pls help with below homework

A: When the government borrowing increases in the economy it lead to the reduction in the funds left by…

Q: Jsing the consumption and saving data above and assuming planned investment is $24 billion, answer…

A: Investment: It refers to the level of money invested by the government of an economy in a country.…

Q: The table shows the demand for loanable funds schedule and the supply of loanable funds schedule…

A: In the loanable fund market, real interest rate is determined by the intersction of quantity…

Question

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.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

For a closed economy, GDP is $10, consumption is $8, taxes are $1, and the buget deficit is $1, What are private saving and national saving? a. $2 and $1 O b. $1 and $2 O c. $1 and $0 O d. $1 and $1
22 hw d-f
u.edu.tr/mod/quiz/attempt.php?attempt=3214468&cmid%3D203021 Refer to the information provided in Figure 23.3 below to answer the question(s) that follow. amadı inden 270 miş 200 işaretle 130 60 450 100 200 300 Aggregate income (Y) Figure 23.3 Refer to Figure 23.3. The equation for the aggregate saving is Lütfen birini secin. O A S= -130 +0,4Y O B. S= 140 +05Y OC S= -80 +0.4Y ODS= -60 +03Y CES 200 +06Y Aggregate consumption (C)
1. Consider a closed economy without a government. If the GDP of theeconomy is $25,000 and the saving rate in the economy is 25 percent, theaggregate saving in the economy is ________.A) $3,320B) $6,250C) $8,000D) $8,650
4. Assume that the economy is described by the following equations: Y=C+l+G, Y=8490, G-2719, T-2056, C-258+ 1/2(Y-T), I-400 + 40r. Private saving and the equilibrium interest rate are O Private saving: 2959; The interest rate: 47.4 O Private saving: 2296; The interest rate: 23.7 O Private saving: 2296; The interest rate: 47.4 O Private saving: 2959; The interest rate: 23.7
I need the answer as soon as possible
If households are sufficiently forward-looking, a debt-financed tax cut would likely consumption and national saving. a. increase; not change b. not change; increase C. increase; decrease d. not change; not change
Suppose the government borrows $50 billion more next year than this year. a. Use a supply-and-demand diagram to analyze this policy. Does the interest rate rise or fall? b. What happens to investment? To private saving? To public saving? To national saving? Compare the size of the changes to the $50 billion of extra government borrowing, C, see the attached picture.
8 Demand, Supply 7 10 4 REAL INTEREST RATE (Percent) 3 2 - 10 20 30 40 50 60 70 80 QUANTITY OF LOANABLE FUNDS (Billions of dollars) Refer to Figure 33-1. If the real interest rate is 3 percent, the quantity of loanable funds demanded is $50 billion, and the quantity supplied is $30 billion. $20 billion, and the quantity supplied is $60 billion. $50 billion, and the quantity supplied is $60 billion. $30 billion, and the quantity supplied is $50 billion.
1. Suppose GDP equals $7 trillion, consumption equals $1.5 trillion, the government spends $4 trillion and has a budget deficit of $1 Trillion Find public saving, taxes, private saving, national saving, and investment
Typed plzzz And Asap
Why, other things remaining the same, does a rise in the real interest rate decrease the quantity of loanable funds demanded? The quantity of loanable funds demanded decreases because at a higher interest rate _______. A. fewer projects have an expected rate of profit below the real interest rate B. more projects have an expected rate of profit that exceeds the real interest rate C. banks want to lend more D. fewer projects have an expected rate of profit that exceeds the real interest rate