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

Expert Solution

Rahul Sunny answered 2 years ago

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.

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In a closed economy, given the following: The consumption function C = 0.8(1 – 0.25) Y...

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The national income identity for an open economy economy is given as Y = C +...

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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 =...

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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

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