If the government runs a trade surplus, a fiscal deficit, and savings remain unchanged, what will happen to the investment component of GDP? Group of answer choices - ONE OPTION ONLY Investment will increase. Investment will remain unchanged. Investment will decrease. Not enough information is given, assuming our simple basic model as the measure of investment

Q: Let's normalize Canadian GDP in 2005 to 100. Out of that, consumption was 70, investment was 20,…

A: The GDP annual average rate of change for a given country economy over a specific time period,…

Q: Explain why investment (I) varies more from year-to-year than consumption (C).

A: Lets understand the factors on which the investment depends: 1. Marginal efficiency of capital: It…

Q: Suppose GDP in this country is $320 million. Enter the amount for consumption. Value National Income…

A:

Q: In the circular flow model:  a) income and expenditures are equal.  b) investment comes from…

A: The circular flow of income is a macroeconomic model that depicts the flow of income and spending…

Q: Which of the following is included in Investment (I)?     the amount spent on new factories and…

A: Investment, with regards to economics, alludes to the expenditure or allotment of assets for the…

Q: Use the information in the table to answer the following questions. All numbers are in billions of…

A: Aggregate spending is the sum of consumption, investment, government spending and net exports in an…

Q: Below is economic data for Germany for 2016 (measured in billions of current euros). What was total…

A: Total Spending is known to be as the spending which mainly means that when a person spend money for…

Q: When total spending is less than production, GDP will decrease.  True  False

A: Production is Real GDP. Spending is aggregate demand.

Q: A decrease in a country's capital stock occurs when Multiple Choice ____ businesses sell machinery…

A: Fixed Capitals: Fixed capitals are those capitals that are used for a longer time and play an…

Q: Refer to the data for 2019 below to answer the following questions: The Equivalence of Expenditure…

A: GivenU.S. total income in 2019 =$21,427 billionWage and salaries =$11,434 billionCorporate profit…

Q: ns) Expenditure (billions) 65.5 65.0 60 61.8 64.5 -0.5 62.1 64.0 61 62.4 63.5 -1.5 62.7 63.0 62 63.0…

A: an option is incorrect because, with GDP higher than Aggregate expenditure at 65, firms tend to have…

Q: onsider a small economy that is closed to trade, so its net exports are equal to zero. Suppose that…

A: The income expenditure model presumes that level of income is determined by the expenditure level. A…

Q: iven the following information, calculate personal consumption expenditures. GDP $5,000 Gross…

A: It is given that the GDP is $5,000, gross private domestic investment is $1,500, government…

Q: In the country of Borealis, the minimum amount of consumption spending that will occur is $300 -…

A: C=300+0.75Y I=100 G=100 X=M=T=0

Q: Y =  C +  S even when the economy is not in equilibrium.  True Or False

A: In an economy, saving is the part of income which is not spent on consumption expenditure, and so Y…

Q: Which of the following options is/are true? At the equilibrium level of national income i. aggregate…

A: Aggregate spending consists of household consumption (C), planned investment (I), Government…

Q: Below is a list of domestic output and national income figures for a certain year. All figures are…

A: Gross Domestic Product (GDP) measures the value of goods and services produced in the domestic…

Q: The following table contains data for a hypothetical closed economy that uses the dollar as its…

A: The entire cost of the goods and services produced in a year is known as the gross domestic product.…

Q: Which of the following will likely lead to an increase in real GDP in the U.S.   Group of answer…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Investment spending rises by $200. Make a table showing the effect on I, C, and GDP for each of 3…

A: The multiplier effect refers to the phenomenon where an initial change in spending (in this case,…

Q: The following table contains data for a hypothetical closed economy that uses the dollar as its…

A: Here we are given various components of aggregate demand (like consumption demand, investment demand…

Q: Which of the following is the proper formula for GDP once you adjust it so it explicitly shows the…

A: The most popular method for calculating GDP is the expenditure approach, which is based on how much…

Q: n the ruins of an ancient Mesopotamian civilization, Dr. Jones has found what appears to be a…

A: GDP or Gross Domestic Product is the sum total of the market value of the final goods and services…

Q: Out of the options below, which is the best answer for a complete analysis of economic conditions?…

A: GDP  = Consumption + Investment + Government Expenditures + Net Exports

Q: Changes in real GDP reflect only changes in the quantities being produced Select one: True False

A: The gross domestic product (GDP) is the total market value of all goods and services produced within…

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: