Principles of Macroeconomics, Loose-Leaf Version
8th Edition
ISBN: 9781337096881
Author: Mankiw, N. Gregory
Publisher: South-Western College Pub
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Question
Chapter 13, Problem 2CQQ
To determine
The Private savings and Government savings.
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Students have asked these similar questions
Ifthe government collects more in tax revenue than it spends, and households consume more than they get in after-tax income,then
a.private and public saving are both positive.
b.private and public saving are both negative.
c.privatesaving is positive,but public saving is negative.
d.private saving is negative,but public saving is positive.
If the government collects more in tax revenue thanit spends, and households consume more than theyget in after-tax income, thena. private saving and public saving are both positive.b. private saving and public saving are bothnegative.c. private saving is positive, but public saving isnegative.d. private saving is negative, but public saving ispositive.
If Congress instituted an investment tax credit, the interest rate would
Select one:
a.rise and saving would rise.
b.fall and saving would fall.
c.fall and saving would rise.
d.rise and saving would fall.
Chapter 13 Solutions
Principles of Macroeconomics, Loose-Leaf Version
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- 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.arrow_forwardWhich of the following would likely increase private saving? a. both expansion of means testing and a consumption tax b. expansion of means testing, but not a consumption tax c. a consumption tax, but not expansion of means testing d. neither expansion of means testing nor a consumption taxarrow_forwardWhat is the likely effect of a substantial increase in government borrowing on the private investment in an economy? A. Private investment will increase due to more government spending. B. Private investment will decrease due to the crowding-out effect. C. Private investment will remain unchanged as government borrowing does not affect private sectors. D. Private investment will first decrease, then increase as government spending stimulates the economy.arrow_forward
- A consumption tax that replaces an income tax a. only taxes a household on the money it spends. b. ultimately taxes income twice-once when the household pays income tax and once when the household makes a purchase. c. discourages saving. d. would likely result in a lower level of saving than an income tax.arrow_forwardIf national saving equals $100,000, net taxes equal $100,000 and government expenditure equals $25,000, what is private saving? Select one: a.zero b.$175,000 c.$25,000 d.-$25,000 e.$225,000arrow_forwardConsider 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?arrow_forward
- 4. What is a government budget deficit? How does it affect interest rate, investment, and economic growth 5. Draw a graph when government run a change in the tax that might increase private saving. How would it affect the market for loanable funds?arrow_forwardSolve all this question compulsory....arrow_forward1. Suppose GDP equals $7 trillion, consumption equals $1.5 trillion, the government spends $4 trillion and has a budget deficit of $1 Trillion Find public saving, taxes, private saving, national saving, and investmentarrow_forward
- Q. Suppose GDP equals $10 trillion, consumption equals $6.5 trillion the government spends $2 trillion and has a deficit of $300 billion. Find Public Saving, taxes, Private Saving, national saving and Investment.arrow_forwardIn a closed economy, the gross domestic product is $45,000, consumption is $17,300 and taxes are $8,200. If the national saving is 9,000, then this government will be running: Select one: a. A budget surplus of $10,500 b. None of the answers are correct c. A budget deficit of $10,500 d. A budget surplus of $18,700 e. A budget deficit of $18,700arrow_forward2. Suppose GDP equals $09 trillion, consumption equals $3 trillion, the government spends $2.5 trillion and has a budget deficit of $450 billion. Try to find public saving, taxes, private saving, national saving, and investment.arrow_forward
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