The meaning of saving and its role in financial market.

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Answer 1

Question

Chapter 17, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

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3. Consider a single firm that manufactures chemicals and generates pollution through its emissions E. Researchers have estimated the MDF and MAC curves for the emissions to be the following: MDF = 4E and MAC = 125 – E Policymakers have decided to implement an emissions tax to control pollution. They are aware that a constant per-unit tax of $100 is an efficient policy. Yet they are also aware that this policy is not politically feasible because of the large tax burden it places on the firm. As a result, policymakers propose a two- part tax: a per unit tax of $75 for the first 15 units of emissions an increase in the per unit tax to $100 for all further units of emissions With an emissions tax, what is the general condition that determines how much pollution the regulated party will emit? What is the efficient level of emissions given the above MDF and MAC curves? What are the firm's total tax payments under the constant $100 per-unit tax? What is the firm's total cost of compliance…

Answer 2

Question

Chapter 17, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 17, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 17, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

Answer 6

Chapter 17, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

Answer 7

Chapter 17, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Answer 8

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.