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5. Saving and net flows of capital and goods In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis. Recall the components that make up GDP. National income (YY) equals total expenditure on the economy's output of goods and services. Thus, where CC = consumption, II = investment, GG = government purchases, XX = exports, MM = imports, and NXNX = net exports:
Also, national saving is the income of the nation that is left after paying for . Therefore, national saving (SS) is defined as:
Rearranging the previous equation and solving for YY yields YY = . Plugging this into the original equation showing the various components of GDP results in the following relationship:
This is equivalent to SS = , since net exports must equal net capital outflow (NCONCO, also known as net foreign investment). Now suppose that a country is experiencing a trade surplus. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > (greater than), < (less than), or = (equal to).
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In: Economics
Consider the following data for a closed economy:
Y = $12 trillion C = $ 8 trillion G = $ 2 trillion Public Saving = -$0.50 trillion
Use the data to calculate the following.
a) Net Taxes (T)
b) Private Saving
c) Investment
d) Government budget surplus or deficit
In: Economics
This question relates to standing waves.
A) Does a closed pipe have a higher or lower fundamental frequency than an open pipe of the same length?
B) If the length of an open tube is 0.8 m, experimentally find the: fundamental frequency and the frequencies of the third and fifth harmonic.
C) We have only addressed the variables of length, wave speed, harmonic number and frequency. These seem to be adequate to fully describe the frequency of a standing wave. But we know that when a musician tightens a guitar string, the frequency of the sound changes. Which of these independent variables changes value when a string is tightened?
In: Physics
A mass of m=1kg of steam is contained in a closed rigid container. Initially the pressure and temperature of the steam are: p1= 1.5 MPa and t1=240?C, respectively. Then the temperature drops to T2 =100?C as the result of heat transfer to the surroundings. Determine: a) quality of the steam at the end of the process, b) percentage of volume that is occupied by the saturated liquid at the final state, c) heat transfer with the surroundings per unit mass of the system. For: p=1.5 MPa and T1=240?C: h1=2900KJ/kg, v1=0.1483 m3/kg while for T2=100?C: h’=419KJ/kg, v’=0.001043m3/kg and h”=2676 KJ/kg ,v”=1.672 m3/kg.
In: Mechanical Engineering
a. Explain the operation of thermodynamic systems i.e. open system and closed system with the aid of diagrams and examples.
b. Define the term 'property of a substance' in a thermodynamic system and state the main difference between intensive and extensive properties with examples.
In: Mechanical Engineering
Consider a closed economy with no government, a fixed price level, a fixed interest rate and the following characteristics:
a. What is autonomous expenditure at equilibrium? (2)
b. What is induced expenditure at equilibrium? (2)
Now suppose that investment increases to $50B.
c. What is the new level of Equilibrium GDP? (2)
d. What is the value of the multiplier? (2)
e. Briefly explain the process of convergence in the AE model. (2)
In: Economics
In a closed combustion vessel, propane (C3H8) and air are mixed at equivalence ratio of 1.11, temperature of 298 K, and pressure of 1 bar. The mixture is burned to produce solely CO2, CO, H2O, and N2. The heat rejected from the vessel is 820 MJ/kmol of fuel. What are the final temperature and final pressure of the mixture? Since neither O2 nor H2 is present in the burned gas, dissociation can be neglected.
In: Mechanical Engineering
Consider the AD-AS model for a closed economy. If today’s income decreases, the AD curve will ; the SAS curve will ; and the LAS curve will . Note: For each of the above blanks, fill in one of the following three choices: A. move to the right; B. move to the left; C. stay where it was.
In: Economics
Consider the general equilibrium effects of monetary policy in a closed economy. If M decreases, the IS curve will ; the FE curve will ; and the LM curve will ; and r* will and y* will . Note: For each of the above blanks, fill in one of the following three choices: A. move to the right; B. move to the left; C. stay; D. increase; E. decrease.
In: Economics
Graphite solid is placed in a closed chamber of fixed volume with an initial oxygen pressure of 200 atm and heated to T=1300°C. Assume the graphite is not completely consumed during the subsequent reaction. (a) If the total pressure is held constant, what ratio of carbon dioxide to carbon monoxide is produced by any reactions that occur? (b) If the reaction is allowed to proceed from the initial conditions without allowing any gas in or out, would the chamber pressure increase, decrease, or remain the same? (c) If the chamber is perfectly insulated, would the chamber temperature increase, decrease, or remain the same? (d) How – if at all – would your answers to the previous parts change if all the graphite is consumed?
Cgraphite + 1/2O2(g) à CO(g) ∆G1° = -111,700 – 87.65 T (J/mol)
Cgraphite + O2(g) à CO2(g) ∆G2° = -394,100 – 0.84 T (J/mol)
In: Chemistry