If national income Y = 10,000, disposable income Yd = 8,000 , consumption is C = 7,500, transfer %3D payments TR = 100 and the budget deficit is BD = 150, what is the level of private domestic investment, I ? (please insert the round number
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- 1) The government's budget deficit increases, and at the same time the trade deficit grows. This will lead to a(n) _____ in the demand and a(n) _____ in the supply of loanable funds in domestic markets. increase; increase decrease; increase decrease; decrease 2) A temporary decrease in government purchases would cause: a rightward shift in the saving curve and a leftward shift in the investment curve. a rightward shift in the saving curve and a rightward shift in the investment curve. no shift in the saving curve, but a leftward shift in the investment curve.Please no written by hand and no emage Consider a small economy that is closed to trade, so its net exports are equal to zero. Suppose that the economy has the following consumption function, where C is consumption, Y is real GDP, I is investment, G is government purchases, and T stands for net taxes: C=40+0.5*(Y-T) Suppose G= 165 billion, I=50 billion, and T=10 billion. Given the consumption function and the fact that for a closed economy total expenditure can be calculated as Y=C+I+GY=C+I+G, the equilibrium output level is equal to _____ billion. Suppose the government purchases are increased by $100 billion. The new equilibrium level of output will be equal to _____ billion. Based on the effect of the change in government purchases on equilibrium output, you can tell that this economy's spending multiplier is equal to _____.Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget. Real Interest Rate National Saving Domestic Investment Net Capital Outflow (Percent) (Billions of dollars) (Billions of dollars) (Billions of dollars) 7 60 25 -10 6 55 30 -5 5 50 35 0 4 45 40 5 3 40 45 10 2 35 50 15 Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol) to plot the supply of loanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market. On the following graph, plot the relationship between the real…
- In periods of rapid U.S. growth, the rapid growth usually adds to large U.S. trade deficits by: O increasing U.S. national income, which increased U.S. imports. O reducing real interest rates in the United States. O increasing U.S. national income, which decreased U.S. exports. O increasing U.S. tax revenues and reducing the Federal budget deficit.Effects of a government budget deficit Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget. Real Interest Rate National Saving Domestic Investment Net Capital Outflow (Percent) (Billions of dollars) (Billions of dollars) (Billions of dollars) 7 40 30 -20 6 35 35 -15 5 30 40 -10 4 25 45 -5 3 20 50 0 2 15 55 5 Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol) to plot the supply of loanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market. Because of the relationship between net capital outflow and net…Use the following table to answer the next question. All figures in the table are in billions. C + I $525 560 RGDP $500 550 600 650 700 750 $600 billion. $700 billion. $650 billion. 595 630 665 700 $550 billion. Exports $15 15 15 5555 The equilibrium level of real GDP in this private open economy is Multiple Choice 15 15 15 Imports $10 10 10 10 10 10
- Consider the following information on aggregate income, consumption expenditure, and planned investment for a country: Aggregate Output/Income $3,950 4,150 Planned Consumption Investment $3,610 3,770 3,930 4,090 4,250 4,410 4,570 4,730 $500 500 4,350 4,550 4,750 4,950 500 500 500 500 5.150 500 5,350 500 When aggregate income is $4,350, O A. saving is $420 and unplanned investment (inventory change) is - $80. B. saving is $40 and unplanned investment (inventory change) is - $80. OC. saving is - $420 and unplanned investment (inventory change) is $500. O D. saving is - $80 and unplanned investment (inventory change) is $500. The equilibrium level of output/income is S (Enter your response as an integer.) Based on the information above, calculate the MPC and MPS. MPC =|. (Round your response to two decimal places.) MPS = (Round your response to two decimal places.)Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget. Real Interest Rate National Saving Domestic Investment Net Capital Outflow (Percent) (Billions of dollars) (Billions of dollars) (Billions of dollars) 7 50 20 -10 6 45 30 -5 5 40 40 4 35 50 30 60 10 2 25 70 15 Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol) to plot the supply of loanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market. Market for Loanable Funds 10 Demand 8 Supply Equilibrium 2 20 40 60 80 100 QUANTITY OF LOANABLE FUNDS REAL INTEREST RATEWhich of the following does the international investment position consider? The distribution of a nation's assets abroad at the end of the year The total amount of a nation's assets abroad at the end of the year The foreign assets in the nation at the end of the year All of the above 11. A) B) C) D) Answer: 12. If the exchange rate between Euro and US$ is $2.32/€ and the exchange rate between Euro and Swiss Franc is SF2.21/€ then what is the exchange rate between US$ and SF? A) $.626/SF B) $.92/SF C) $1.05/SF D) $1.6/SF Answer:
- Effects of a government budget deficit Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget. Real Interest Rate National Saving Domestic Investment Net Capital Outflow (Percent) (Billions of dollars) (Billions of dollars) (Billions of dollars) 7 55 25 -10 6 50 35 -5 5 45 45 0 4 40 55 5 3 35 65 10 2 30 75 15 Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol) to plot the supply of loanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market.Consider a macroeconomy where the current population is 800 thousand people. Gross domestic private investment is constant $2500 million while consumer expenditure is described by the equation: C = 580 +0.8DI. The government is fairly active, with a total expenditure of $2000 million andnet taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2500 million. Currently, the overall price level (GDP deflator) is 118 and the potental GDP level is $13.5 billion.(Question4 of 7)Now, consider that the government decreases taxes by 7.5%. While the change had a direct impact on the economy, other market conditions led to an unanticipated change in the economy. Specifically, imports decrease by 7.5%. At the same time, given the birth rate, mortality rate, and net migration, the economy experienced a 0% change in its population.1. As a result of these events, what is the current equilibrium level of GDP?…Compare the impact on investment spending of an increase in the government’s budget deficitin a small open economy versus in a comparable closed economy. Assume that prices areflexible and that factors of production are fully employed in both economies. Assume thatthere is perfect capital mobility for the small open economy