ountry has domestic investment of $200 billion. Its citizens purchase $600 billion of foreign assets and foreign citizens purchase $300 billion of its assets. What is national saving? a. $500 billion b. $400 billion Oc. $800 billion Od. $600 billion

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: $ Billion GDP 950 Household Consumption 650 Government Consumption 150 Government Investment Direct…

A: National savings is the total savings of an economy which includes the savings of households,…

Q: If the dollar interest rate is 4 percent, and the euro interest rate is 6 percent, then an investor…

A: Here, it is given that the interest rate on dollars is 4% and interest rate on euros is 10%.

Q: If the quantity of loanable funds supplied is greater than the quantity demanded, what are the…

A: Loanable Funds: Loanable funds have been given a prominent role by neo-classical economists. For…

Q: Assume the United States Personal Savings equals zero. Using national income accounting concepts,…

A: As given in the question that the country U's personal savings is equal to zero.  National Income…

Q: a. What is the level of private saving? 95 billion dollars b. What is the level of public saving? -…

A: Real GDP equals potential GDP. (  amount in billion dollars)Potential GDP…

Q: The Central Bank of Iran increased its interest rates. How will an increase in interest rates affect…

A: Usually interest rates are increased to reduce the borrowing levels and offset inflation

Q: If the United States saves $1,000 billion and U.S. net capital outflow is -$300 billion, U.S.…

A: Investment,Investment can be made out of the savings of the country. The savings acts as the base…

Q: 42. Suppose a closed economy had public saving of −$6 trillion and private saving of $15 trillion.…

A: National Savings is the sum of public as well as private savings.  Given : Public Saving = -$6…

Q: When net capital flows are negative,   A. net foreign investment is negative.   B. capital…

A: Capital account refers to the account of any country that measures the net capital flows in that…

Q: Last year a country purchased $1.5 trillion worth of goods and services from foreign countries, sold…

A: here we calculate the value of domestic investment by using the given data so the calculation is as…

Q: What happens in the long run for a country that increases its saving rate? O Productivity increases…

A: A greater saving rate leads to a higher steady-state capital stock and production level. The…

Q: Suppose a country, Macroland, doesn't trade with other countries. Its GDP is $20 billion. Its…

A: GDP measures the market value of goods and services produced within an economy in a given period of…

Q: The current account represents the difference between gross national disposable income and: a.…

A: The two-component of the balance of payment BOP of a country is the current account and the capital…

Q: Most of the investment decisions in the U.S. economy are made by a. consumers. b.…

A: The decisions on investment are made in the consideration of the variety of factors such as the…

Q: Some data at first might seem puzzling: The share of GDP devoted to investment was similar for…

A: The growth aspects and measures of a country can be measured by the gross domestic product that…

Q: Discuss the role of budget surpluses and trade surpluses in national saving and investment

A: Budget surplus: When the income of the government exceeds their expenditure it is termed as Budget…

Q: In a closed economy, should national saving exceed investment, we would expect: a.a leftward shift…

A: Aggregate demand refers to the total demand for commodities and services made by all the economic…

Q: Which of the following statements is correct?   A.the total income in the economy that remains after…

A: A closed economy refers to the one that does not make any economic transaction with other countries…

Q: The equilibrium level of income in an open economy is where: B. Consumption + Savings Imports +…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export.  So,  Y…

Q: 3. If at a given real interest rate desired national saving is $120 billion, domestic investment is…

A: A financial market where people, companies, and governments come together to lend and borrow money…

Q: Give exact answer without photo answer and take a like

A: To analyze the determinants behind the saving-investment balance developments in Turkey over the…

Q: Choose all true statements on the saving, investment and loanable funds market in a closed economy.…

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

Q: How is capital transferredbetween savers and borrowers?

A: A financial institution is a channel that transfers capital between borrowers and savers. They only…

Q: Consider country B. Its absorption is 2500, the tax is 400, the investment is 400, the national…

A: Government saving = Government revenue from taxation - Government spending  Real income =…

Q: What do loanable funds finance? What is the source of loanable funds? Loanable funds finance…

A: Saving is the source of loanable funds supply Investment is the source of loanable funds demand.

Q: Investment is back bone to a nation’s GDP. How you will describe it and what elements causes to…

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

Q: When the government budget deficit rises, national saving is reduced, interest rates rise, and…

A: When the government budget deficit rises, national saving is reduced, interest rates rise, and…

Q: A country has domestic investment of $100 billion. Its citizens purchase $500 of foreign assets and…

A: National saving is defined as the combination of public and private saving. This national saving is…

Q: If Japan goes from a small budget deficit to a large budget deficit, it will reduce A. public saving…

A: A budgetary deficit is alluded to as the circumstance where the spending is more than the pay.…

Q: A country has $100 million of net exports and $170 million of saving. Net capital outflow is O A.…

A: In a open economy, at the equilibrium leakages are always equal to injections. Leakages are the…

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.