transseNational savings & investment identity29. If the budget deficit in a country rises, all else equal, what musthappen to:Its level of domestic private savings?Its level of domestic private investment?Its trade deficit?Its trade surplus?

The question is asking about the impact of an increase in a country's budget deficit on its domestic…

Answered: transse National savings & investment…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Under which of the following circumstances would it most likely be beneficial for a government to be a large borrower of foreign capital ? A. Never, as there is no economic benefit to a country from running Trade Deficits. B. If the inflow of Capital is absorbed/offset by greater government borrowing. C. When borrowing larger amounts is based on unconventional/heterodox economic viewpoints. D. When those funds are invested in sectors that sustain Economic Growth over time. E. None of the Above
i need the answer quickly
A country’s private consumption is 30, government spending is 7, investment is 5, net factor income from abroad is 2, GDP is 45. The country’s gross national disposable income is 46. the country’s gross national income is 47. the gross national expenditure is 42 and the Current account is 4. The country sent abroad 2 and received 1 of unilateral transfers. The rest of the world claims 100 of debt from the country above. This is a stock variable. The country lends at 4% and borrows at 3%. These are rates of change of stocks. Use this information combined with one of the flow variables describing the country’s international transactions to find the stock of what the world owes this country. Note: no workers worked across the border. No wages flowed in, none flowed out. Is the country from the previous question rich or poor? Does it enjoy the exorbitant privilege? In what important way is this country’s stock and flow of investment different from the US?
QUESTION 48 The equilibrium level of income in an open economy is where: B. Consumption + Savings = Imports + Exports. C. Savings + Exports = Investment + Exports. D. Savings + Imports = Investment + Exports.
Based on the Balance of Payments account presented in this table, the net exports are: a. 2300 b. -2600 c. -300 d. -200
two reasons: They export raw materials and export finish goods Developing economy importing machinery and other capital 2 reasons discussed above is why a country could run a trade deficit and hence be an international borrower. In which of these 2 cases should one be worried about the sustainability of the deficit and the ability of the country to pay back foreign loans in the future? Why?
2. The current account of the balance of payments is calculated as: a. the sum of imports, exports, and transfers. b. the sum of national income and national expenditure. c. the sum of the trade balance, net factor income from abroad, and net unilateral transfers. d. the difference between GDP and GNE.
If U.S. residents purchase $600 billion worth of foreign assets and foreigner residents purchase $300 billion worth of U.S. assets, OA. U.S. net capital outflow is $300 billion; capital is flowing into the U.S. OB. U.S. net capital outflow is -$300 billion; capital is flowing into the U.S. OC. U.S. net capital outflow is -$300 billion; capital is flowing out of the U.S. OD. U.S. net capital outflow is $300 billion; capital is flowing out of the U.S. Reset Selection
1
An economy can run a trade deficit (have negative exports) permanently if: a. The Current and Financial account generate a net outflow of money, and the external debt does not increase as percentage of GDP. b. The level of GDP of the country is sufficiently low. c. Migration of the national labour force to overseas is allowed. d. The Current and Financial account bring enough net inflow of money, and the external debt does not increase as percentage of GDP.
provides some hypothetical data on macroeconomicaccountsforthreecountriesrepresented by A, B, and C and measured in billions of currency units. In Table, private household saving is SH, tax revenue is T, government spending is G, and investment spending is I. a. Calculate the trade balance and the net inflow of foreign saving for each country. b. State whether each one has a trade surplus or deficit (or balanced trade). c. State whether each is a net lender or borrower internationally and explain.
Please solve and show steps. I do not understand how 10 Billiong, -12billion is the answer.

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transse National savings & investment identity 29. If the budget deficit in a country rises, all else equal, what must happen to: Its level of domestic private savings? Its level of domestic private investment? Its trade deficit? Its trade surplus?