Give the answer of both. The table below shows aggregate values for a hypothetical economy. Suppose this economy has real GDP equal to potential output.Potential GDP$14 000Governmentpurchases$2200$300$11 500$2000InvestmentConsumptionNet tax revenuesTABLE 25-3Refer to Table 25-3 What is the level ot public saving for this economy?Select one:Oa $200Ob-$100Oc 5300O d $500Oe $200 Suppose Canadian real GDP is equal to potential GDP. A signiticant and sustained appreciation of the Canadian dollar on theforeign-exchange market then requires the Bank of Canada toSelect one:O a increase the target band for the inflation rate.Obincrease the target band for the overnight lending rate.Oc engage in contractionary monetary policy to counter the rise in the dollarOdidentity the cause of the change in the exchange rate before taking any action to adjust policy.Oe engage in expansionary mone tary policy to counter the nse in the dollar.

Solution: Option a is correct -$200 The level of public saving for this economy 1) Public saving =…

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Vhat is the level of public saving for this economy?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Give the answer of both.

The table below shows aggregate values for a hypothetical economy. Suppose this economy has real GDP equal to potential output.
Potential GDP
$14 000
Government
purchases
$2200
$300
$11 500
$2000
Investment
Consumption
Net tax revenues
TABLE 25-3
Refer to Table 25-3 What is the level ot public saving for this economy?
Select one:
Oa $200
Ob-$100
Oc 5300
O d $500
Oe $200

Suppose Canadian real GDP is equal to potential GDP. A signiticant and sustained appreciation of the Canadian dollar on the
foreign-exchange market then requires the Bank of Canada to
Select one:
O a increase the target band for the inflation rate.
Obincrease the target band for the overnight lending rate.
Oc engage in contractionary monetary policy to counter the rise in the dollar
Odidentity the cause of the change in the exchange rate before taking any action to adjust policy.
Oe engage in expansionary mone tary policy to counter the nse in the dollar.

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