Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 18, Problem 4QR
To determine
The Investment and its relation to National savings in a closed economy.
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Chapter 18 Solutions
Essentials of Economics (MindTap Course List)
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Similar questions
- What is Foreign Direct Investment (FDI) all about?arrow_forwardWhy does most countries have different investment priorities?arrow_forwardIn an open economy, gross domestic product equals $2,450 billion, consumption expenditure equals $1,390 billion, government expenditure equals $325 billion, investment equals $510 billion, and net capital outflow equals $225 billion. What is national saving?arrow_forward
- What do you expect will happen to investment demand in this country?arrow_forwardExplain why, in a small open economy, national saving can be less than investment. Use a savings-investment graph to explainarrow_forwardIn an open economy, it is impossible to have national saving equal to domestic investment.Answer true, false, or uncertain. Please briefly explain your answer.arrow_forward
- Economics Consider the following data for country B, an open economy, for this year: Y = $14 trillion C = $6 trillion G = $2 trillion NX = $3 trillion T = $4 trillion TR = $0.5 trillion a) Find country B’s domestic investment. b) Find country B’s private saving. c) Find country B’s public saving. d) Find country A’s national saving. e) Find country B’s net foreign investmentarrow_forwardChange in the financial market of an economy will affect the global economy. Briefly discuss.arrow_forwardTrue or false? Low saving impedes growth in capital, productivity, and living standards for a closed economy, but not for an open economy. You'd better explain your answer by graph. (Hint: Consider elasticity of demand/supply in loanable fund market.)arrow_forward
- What is an emerging economy? How can countries with emerging economies make use of information technology?arrow_forwardWhat is the saving and investment equation? If national saving declines what will happen to domestic investment and net foreign investment?arrow_forwardWhat do you understand by the term “closed economy”? For a closed economy show, National savings = National Investmentarrow_forward
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