Question

In: Economics

1. The relationship National Saving = Y – C – G holds for: A closed economy...

1. The relationship National Saving = Y – C – G holds for:

A closed economy only

An open economy only

Either an open or closed economy

2. The relationship Saving = Investment holds for:

A closed economy only

An open economy only

Either an open or closed economy

3. True or false: a trade deficit implies a positive net capital outflow.

True
False


Solutions

Expert Solution


Related Solutions

What is the relationship between national saving and investment in a closed economy? Start by explaining...
What is the relationship between national saving and investment in a closed economy? Start by explaining what is a closed economy.
In a closed economy Y = $18 trillion, national saving = $5.5 trillion, consumption is equal...
In a closed economy Y = $18 trillion, national saving = $5.5 trillion, consumption is equal to government expenditure. What is the government expenditure? Skyline Chili wants to finance the purchase of new equipment for its restaurants. The firm has limited internal funds, list two options that are available for Skyline to seek the funding. What do you mean by Kuwait government has a budget deficit for the year 2020? Using a graph explain the impact of Kuwait government introducing...
Closed economy: Y = $12 trillion C = $ 8 trillion G = $ 2 trillion...
Closed economy: Y = $12 trillion C = $ 8 trillion G = $ 2 trillion Public Saving = -$0.50 trillion a) Net Taxes (T) b) Private Saving c) Investment d) Government budget surplus or deficit Please explain.
The identity between national savings and investment holds only in a(n): open economy. closed economy. shrinking economy. growing economy.
The identity between national savings and investment holds only in a(n): open economy. closed economy. shrinking economy. growing economy.
In a closed economy, given the following: The consumption function C = 0.8(1 – 0.25) Y...
In a closed economy, given the following: The consumption function C = 0.8(1 – 0.25) Y + 12           The average tax rate t = 25% The level of private investment I = 26 The level of government spending G = 14 Where Y is the national income. Calculate the equilibrium level of income and output in the economy. Calculate the expenditure multiplier and show the effect of an increase in government spending and an increase in private investment. Given the...
Write the equation for national saving for a small open economy. If national saving is held...
Write the equation for national saving for a small open economy. If national saving is held constant, what happens to domestic investment if NCO decreases? Why? Suppose the nominal exchange rate is 100 yen per dollar. Further, suppose the price of a baseball glove in Canada is $50 and the price of a baseball glove in Japan is 7500 yen. What is the real exchange rate between Japan and Canada in terms of baseball gloves? Is there a profit opportunity...
The national income identity for an open economy economy is given as Y = C +...
The national income identity for an open economy economy is given as Y = C + I + G + EX − IMwhere Y is real GDP; C is consumption, I is investment, G is government expenditure, EX is exports and IM is imports. (a) List the types of types of purchases that are included in C (5 points) (b) What does I include? (3 points) (c) Explain why G is most likely much less than the actual government outlays...
Assume that GDP (Y ) is 5,000 in a closed economy. Consumption (C) is given by...
Assume that GDP (Y ) is 5,000 in a closed economy. Consumption (C) is given by the equation C = 1,200+0.3(Y −T)−50r, where r is the real interest rate, in percent. Investment (I) is given by the equation I = 1, 500 − 50r. Taxes (T ) are 1,000, and government spending (G) is 1,500. (a) What are the equilibrium values of C, I, and r? (b) What are the values of private saving, public saving, and national saving? (...
Consider a closed economy described by the following: Y = 2,000 G = 700 T =...
Consider a closed economy described by the following: Y = 2,000 G = 700 T = 500 C = 100 + 0.6(Y – T) I = 750 – 50r a.       Find consumption. b.       Find the equilibrium interest rate. c. Find investment. d. Find private saving, public saving, and national saving.
In an open economy, the relationship between GDP ( Y) and expenditures is Y = C...
In an open economy, the relationship between GDP ( Y) and expenditures is Y = C + I + G. Select one: True False
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT