The next three questions involve the following situation. Consider a closed economy in which C = $345 billion, G = $350 billion, Y = $1 trillion, and T = $100 billion. 26. What is the overall level of saving, S? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion. 27. What is the level of private saving? (A) $250 billion.

The next three questions involve the following situation. Consider a closed economy in which C = $345 billion, G = $350 billion, Y = $1 trillion, and T = $100 billion. 26. What is the overall level of saving, S? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion. 27. What is the level of private saving? (A) $250 billion.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Savings,investment And The Financial System

Section: Chapter Questions

Problem 4PA

See similar textbooks

Similar questions

The next three questions involve the following situation. Consider a closed economy in which C = $345 billion, G = $350 billion, Y and T = $100 billion. $1 trillion, 26. What is the overall level of saving, S? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion. 27. What is the level of private saving? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion. 9. 28. What is the level of investment, I? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion.
The next three questions involve the following situation. Consider a closed economy in which I $100, 000, 000, 000, and T = $30, 000, 000, 000. $20, 000, 000, 000, G = $45, 000, 000, 000, Y = 1. What is total saving, S? (A) -$30 billion. (B) $35 billion. (C) -$15 billion. (D) $20 billion. 2. What is consumption? (A) $15 billion. (B) $35 billion. (C) -$15 billion. (D) -$35 billion. 3. What is private saving? (A) $15 billion. (B) $35 billion. (C) -$15 billion. (D) -$35 billion. 4. Which of the following assets performs best in times of demand-pull inflation? (A) Gold. (B) Agricultural real estate. (C) Stocks. (D) Bonds.
If consumption expenditures are $1800 million, gross investment is $450 million, imports are $350 million, exports are $180 million, government expenditure on goods and services is $120 million, and government transfer payments are $180 million and net taxes are $250 million; a) Calculate the GDP. b) Is there budget deficit or surplus? Calculate. c) How much is the private (household) saving?
Consider an economy in which GDP is $30 billion. Tax revenue is $7 billion, consumption is $15 billion, and the government has a budget surplus of $2 billion. Show your work in each of the following questions.(c) What is national saving?(d) What is the level of investment?
Question 1 Suppose the information below shows aggregate values for a hypothetical economy. Real GDP is equal to potential GDP. All figures are billions of dollars. Potential GDP Net tax revenue Government purchases = = = 950 = 125 140 Desired Investment Desired consumption (a) What is the level of private saving? (b) What is the level of public saving? (c) What is the level of national saving? (d) Is the interest rate at its equilibrium level? Provide a justification. 10 800
2.1 Question 1 Consider the following model of the economy: Y, =C+I+GY, = 8,000 G, = 2,500 T, = 2,000 C, = 1,000+(y-7) I, = 1,200-100r (a) In this economy, compute private saving, public saving, and national saving. (b) Find the equilibrium interest rate. (c) Now suppose that G is reduced by 500. Compute private saving, public saving, and national saving. (d) Find the new equilibrium interest rate.
Economics 1) Draw a saving-investment diagram to show how each of the following changes shifts the IS curve. (a) Future income rises. (b) The future marginal productivity of capital increases. (c) Government purchases decrease temporarily. (d) The effective corporate tax rate increases.
8) Consider an economy described as follows: Y=C+l+G. Y=8,000 G=2,500. T=2,000. C=1,000+2/3(Y-T) |=1,200-100r a) In this economy, compute private saving, public saving, and national saving.
Consider the following data (in billion $) for a country in a particular year: (assume this country has Zero Transfer Payment Personal consumption expenditure (C) 200 Exports (x) 10 Government Purchases of goods and services (G) 120 Imports (m) 15 Gross Domestic Product (Y) 1800 Taxes 20 a. What is the value of private and households saving? b. What is the value of government saving? c. What is the value of total (national) saving? d. What is the value of gross investment? e. What is the value of net export? f. Is the country lending to or borrowing from rest of the world? g. Dose the government has deficit, balance or surplus budget? h. What is the amount of investment financed by national saving? i. What is the amount of investment financed by borrowing from rest of the world? J. What is the meaning of transfer payment
25) Use a saving—investment diagram to explain what happens to saving, investment, and the real interest rate in each of the following scenarios in a closed economy. (a)In an agricultural economy, great weather this year promises a bumper crop next year, leading citizens to expect higher income next year. (b)Government regulations going into effect next year will reduce the marginal product of capital. (c)The government increases lump-sum taxes on citizens. 26) An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by Cd = 3000 - 2000r + 0.10Y Id = 1000 - 4000r where Y is output and r is the expected real interest rate. (a)Find the real interest rate that clears the goods market. Assume that output equals full-employment output. (b)Calculate the amount of saving, investment, and consumption in equilibrium. (c)If a shock to wealth causes desired consumption to decline by 200 (so that…
If disposable personal income is $400 billion and personal saving is $8 billion, the personal saving rate is Select one: a. 12%. b. 5%. C. 1.5%. d. 2%.
Question 49 a. Identify three government policies that discourage saving. b. Why do many economists advocate a consumption tax rather than an income tax? c. Explain howa higher rate of return on saving could, at least in theory, lead to lower saving.