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Question 5 Suppose GDP is RM8 billion, taxes are RM1.5 billion, and public saving is RM0.2 billion. Assuming this economy is closed, calculate consumption, govemment purchases, national saving, and investment. Group 3, 6 & 9 Question 8 Suppose that Intel is considering building a new integrated chip (IC) factory in Cyberjaya. a) Assuming that Intel needs to borrow money in the bond market why would an increase in interest rates affect Intel's decision about whether to build the factory?

Question 5 Suppose GDP is RM8 billion, taxes are RM1.5 billion, and public saving is RM0.2 billion. Assuming this economy is closed, calculate consumption, govemment purchases, national saving, and investment. Group 3, 6 & 9 Question 8 Suppose that Intel is considering building a new integrated chip (IC) factory in Cyberjaya. a) Assuming that Intel needs to borrow money in the bond market why would an increase in interest rates affect Intel's decision about whether to build the factory?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Chapter 7: Saving, Investm ent, and the Fin ancial System Question 4 Explain the difference between saving and investment as defined by a macroeconomist. Which of the following situation represent investment? Saving? Explain. a) Your family takes out a housing loan and buys a new house. Group 2, 5 & 8 b) You use your RM200 paycheck to buy stock in TM. c) Your roommate earns RM100 and deposits it in her account at a bank. d) You borrow RM1.000 from a bank to buy a motorbike to use in your pizza delivery business. Question 5 Suppose GDP is RM8 billion, taxes are RM1.5 billion, and public saving is RM0.2 billion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment. Group 3, 6 & 9 Question 8 Suppose that Intel is considering building a new integrated chip (IC) factory in Cyberjaya. a) Assuming that Intel needs to borrow money in the bond market why would an increase in interest rates affect Intel's decision about whether to build the factory? b) If Intel has enough of its own funds to finance the new factory without borrowing. would an increa se in interest rates still affect Intel's decision about whether to build the Group 1, 4 & 7 factory? Explain.
Transcribed Image Text:Chapter 7: Saving, Investm ent, and the Fin ancial System Question 4 Explain the difference between saving and investment as defined by a macroeconomist. Which of the following situation represent investment? Saving? Explain. a) Your family takes out a housing loan and buys a new house. Group 2, 5 & 8 b) You use your RM200 paycheck to buy stock in TM. c) Your roommate earns RM100 and deposits it in her account at a bank. d) You borrow RM1.000 from a bank to buy a motorbike to use in your pizza delivery business. Question 5 Suppose GDP is RM8 billion, taxes are RM1.5 billion, and public saving is RM0.2 billion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment. Group 3, 6 & 9 Question 8 Suppose that Intel is considering building a new integrated chip (IC) factory in Cyberjaya. a) Assuming that Intel needs to borrow money in the bond market why would an increase in interest rates affect Intel's decision about whether to build the factory? b) If Intel has enough of its own funds to finance the new factory without borrowing. would an increa se in interest rates still affect Intel's decision about whether to build the Group 1, 4 & 7 factory? Explain.
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