If domestic saving is less than domestic investment, then investment can be financed by: the budget deficit new savings instruments foreign saving higher rates of inflation higher interest rates
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8.. If domestic saving is less than domestic investment, then investment can be financed by:
-
- the budget deficit
- new savings instruments
- foreign saving
- higher rates of inflation
- higher interest rates
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- What will be the effect of “contractionary fiscal policy of abroad” on net export, saving and interest rate? Show your answer with the help of graph and also properly explain10. A decrease in Federal government taxes would: O. decrease in consumption and savings O. decrease transfers and government purchases O. increase in consumption and savings O. decrease importsExplain fiscal policy and give an exmple of how it could be applied to the current COVID situation in the United States.
- The US and China are the two biggest economies of the world. Which of these situations will most likely increase the value of the US dollar as it trades with China? a. China's GDP increases faster than US O b. China imports more from the US than it exports to the US O c. China exports more to the US than it imports from the US O d. China's exports increases sharply1. Country X has following data: C = 20 + 0.8Y4, I = 30, G = 40, Tx = 20, T, = 15, X = 60, M = 20 + 0.04Y, incoming year growth target is 600, All figures is billion. Please calculate: a. National income equilibrium! b. Consumption and saving equilibrium! c. Government income from tax! d. How much change in government consumption if they want to achieve growth target?Write out the equation for desired national savings. What changesto desired national saving and desired national consumption happen whengovernment spending increases, funded by an increase in taxes? Why doesconsumption change by less than G?
- The cost of rebuilding the Philippines after typhoon Haiyan could reach USD 5.8bn”, a senior official has said. Assume the government of Australia Department of Foreign Affairs and Trade provided a grant of USD 5.8 billion. Also assume that despite the hardships the Philippine families experienced, 15% was the beneficiary savings from the Australian grant. Further, assume all other factors remain constant.a. Calculate the total effect of the spending multiplier of the Australian government grant on the Philippine economy GDP growth. b. Examine the overall multiplier effect of the USD5.8 billion grant on the Philippine economy. Answer asap n correctly with proper typed explanation1. Assume that the gross domestic product is $6,000, personal disposal income is $5,100, thegovernment deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the sizeof:a. Private Savingb. Investmentc. Government Spendingd. National Savingse. Taxesf. Public savings2. Categorize each flow in the following table as either an injection into the circular flow or a leakage from the circular flow Flow Injections Leakage Saving (S) Net taxes (NT) Exports (X) Investment spending (I) Government purchases (G) Imports (IM).
- Ina hypothetical economy, real GDP is $35 trillion, the capital stock is $100trillon, household savings is $5 trillion business savings is $4 trillion the net capital outfow is $2 trillion, and the budget deficit is S$1 trillion. National savings in this economy is O $8 trillion $8.5 trillion $9 trillion $75 trillion SO00OAssume the United States Personal Savings equals zero. Using national income accounting concepts, show what this might mean for U.S. private investment spending and the US trade relationship with the world. How would the United States finance its investment spending? How would the US finance its government budget, especially if it becomes a budget deficit? Show and explain1. A college wants to produce an effigy for the student carnival. Preliminary studiesmade it possible to establish that the production of these effigies requires fixed costs of $2,008and variable costs (materials, labor, energy) of $0.90 per effigy. One of therequirements of the college being not to make a deficit, he had a market study carried out.It appears from this study that by selling these effigies for $3.75 we can hope to sell them1,000, whereas by setting the price at $2.50, the potential sales are 3,000.a) Express the demand in terms of the selling price and representgraphically this function.b) Express the cost of production as a function of the selling price.c) Express the income in terms of the selling price and determine the price that thecollege should fix to maximize the income from this sale of effigies.d) Represent the income function and the cost function on the same system of axesand determine the prices corresponding to the break-even thresholds and numbereffigies…