Write out the equation for desired national savings. What changes to desired national saving and desired national consumption happen when government spending increases, funded by an increase in taxes? Why does consumption change by less than G?
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Write out the equation for desired national savings. What changes
to desired national saving and desired national consumption happen when
government spending increases, funded by an increase in taxes? Why does
consumption change by less than G?
Step by step
Solved in 4 steps
- 1. 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?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 $2100 Investment $300 Consumption $10 000 Net tax revenues $2000 Refering to the table above, what is th eprivate saving for this economy?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 SO00O
- If national saving in a closed economy is greater than zero, which of the following must be true? O Y-C-G> 0 Investment is positive. O Either public saving or private saving must be greater than zero. O All of the other answers are correct.Imagine that the U.S. economy finds itself in the followingsituation:agovernmentbudgetdeficitof$100 billion, total domestic savings of $1,500 billion, and total domestic physical capital investment of $1,600 billion.Accordingtothenationalsavingandinvestment identity,whatwillbethecurrentaccountbalance?What willbethecurrentaccountbalanceifinvestmentrisesby $50billion,whilethebudgetdeficitandnationalsavings remain the same?What is national saving? What is privet saving ?what is public saving? How are these three variables related?
- If household saving decreases by $4 million, business saving increases by $4 million, and the government budget deficit decreases by $4 million, then private saving ______ and public saving ______. Select one: a. increases; increases b. increases; decreases c. does not change; increases d. does not change; decreases..... expl whyPlease help with this from c . Please make it make sense because I have seen answers that dont seem right. I would like graph of C as well showing the shifts and changesConsider an economy described by the following equations:Y=C + I +GY=7,000G=4000T=2,000C=150+0.75(Y-T)I=1,000-50ra. In this economy, compute private saving, public saving and national saving.b. Calculate the equilibrium interest rate.c. Now suppose the G rises by 1,000. Compute private saving, public saving, andnational saving.d. Calculate the new equilibrium interest rate.Assume 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 explain
- Define the term Projected annual net savings?Consider a closed economy. If national saving is 1000, GDP is 6000, andconsumption is 4500. Further assume that the government has a deficit of 400. Iftransfer and net interest payment is 400, the tax revenue is ________ and privatesaving is __________.Why is it incorrect/inappropriate to say that governments “invest” the “national savings?”