In a small open economy, output is $25 billion, government purchases are $6 billion, taxes are $5 billion. Consumption function is C = 2 + 0.6(Y – T). Investment is related to the world real interest rate in the following manner: World Real Interest Investment Rate 5% $3 billion 4% $4 billion 3% $5 billion 2% $6 billion a. How much is consumption? b. How much is national saving? c. For each value of the world real interest rate, find net capital outflow.

In a small open economy, output is $25 billion, government purchases are $6 billion, taxes are $5 billion. Consumption function is C = 2 + 0.6(Y – T). Investment is related to the world real interest rate in the following manner: World Real Interest Investment Rate 5% $3 billion 4% $4 billion 3% $5 billion 2% $6 billion a. How much is consumption? b. How much is national saving? c. For each value of the world real interest rate, find net capital outflow.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

As the cost of energy falls relative to labor in Figure 2-8, and the isocost curve shifts from HJ to FG, firms have an incentive to switch to technology in order to their costs. 4 Tonnes of coal 10 9 8 S 3 2 1 N G Cost-E50 Cost-E40 B F M Cost-E80 H 1 2 3 4 5 6 7 8 9 10 Number of workers
Please solve fast with correct answer and explanation
What are three ways that starting a new business helps the economy?
Trying to figure out?
Q1 What is business?
Raad wants to sell his workout DVDS in the Middle East, Asian, and Latin African countries. will help him reach vendors abroad, without the expense of traveling to meet them face-to-face. A website and other technological advances B. Partnering with a large U.S recording studio C. The SBA (Small Business Administration) D. An incubator facility
This is wrong question and solution.
Does only making money advance the automobile’s goals or are there perhaps additional reasons that you can name and discuss in detail.
can you please explain step 4 again, I can't see whats written there.
What is business planning?
This was wrong ighh
How do market affect your life