A closed economy has income of $1000, government spending of $200, taxes of $150, and investment of $250. What is private saving?

Q: Show the solution. Suppose GDP equals $30 trillion, consumption equals $20 trillion, the government…

A: Given  GDP = $30 trillion.  Consumption = $20 trillion.  Government spending = $4 trillion.  Budget…

Q: Suppose a closed economy has gross domestic product (GDP) of $10,000, Taxes of $3,000, Consumption…

A: National savings refer to the sum of private and public savings. When taxes exceed government…

Q: Suppose GDP is $10 trillion, taxes are $2.5 trillion, private saving is $1.5 trillion, and public…

A: In a closed economy, GDP is the sum of the consumption, government purchase and investment and that…

Q: A tax law change that successfully encourages saving will interest rates, which leads to investment…

A: Equilibrium in the loanable funds market occurs at the intersection of demand and supply curves of…

Q: How does a decrease in the tax rate on income earned on saving affect saving, investment, the…

A: In an economy, government taxes will have a significant impact on households consumption and savings…

Q: Which of the following should NOT be considered as part of fixed investment? 1. Toyota buys a new…

A: According to the economist investment is such a concept which focuses on the goods production in…

Q: Consider an economy described by the following equations: Y = C + I + G Y = 5,000 G = 1,000 T =…

A: Given: Y = 5,000G = 1,000T = 1,000C = 250 + 0.75(Y −T )I = 1,000 − 50 r.

Q: Suppose in a closed economy GDP equals $15 trillion, consumption equals $7.5 trillion, the…

A: Public saving =T-G=budget surplus=$900 billion=0.9 trillion The public saving is $0.9 trillion…

Q: Which of the following situations represents investment? Saving? Explain Your family takes out a…

A: The situation that represents investment or savings are as follows :

Q: A closed economy has income of $1,000, government spending of $200, taxes of $150,and investment of…

A: "Savings refers to the process of setting aside some part of income for future use." Individuals may…

Q: What is the impact on the national saving rate if the consumption and government share each increase…

A: Answer in step 2.

Q: In a given year, a country's GDP = $9,841, net factor payments from abroad = $889, taxes = $869,…

A: Public savings plus private savings make up national savings. It represents the domestic supply of…

Q: Economists from Funlandia have collected the following information about the economy (all measured…

A: At equilibrium, Y = C+I+G Y = 9+2-0.5r+2.5 12 = 13.5-0.5r -1.5 = 0.5r r = 3% Therefore, real rate of…

Q: Which type of investment is called a mixed investment?

A: Investment refers to the purchase of an asset that entails greater payoff in the form of increased…

Q: If Net Investment = 0 in a given year, this indicates that we have neither lost nor gained capital.…

A: If Net Investment = 0 in a given year, this indicates that we have neither lost nor gained capital.…

Q: Discuss the overall purpose people have for investing. Define investment

A: Investment: Investment is the commitment of funds for some specific period of time, in return will…

Q: Q1: Refer to the information provided in the Table below, answer the questions that follow:…

A: Marginal propensity to consume is the proportion of the disposable income that a person wants to…

Q: Q. Suppose GDP equals $10 trillion, consumption equals $6.5 trillion the government spends $2…

A: Given: Y= 10.0, C= 6.5, G= 2.0, G– T= 0.3 Public saving = T– G = – 0.3

Q: Complete the following table by calculating private saving, public saving, national saving,…

A: Here we can find the following terms which are as follow-

Q: If Government Spending (G) is 200 million, Tax Revenue (T) is $260 million \$2 Consumption is $300…

A: Given information: Government Spending (G) = 200 million, Tax Revenue (T) = $260 million Consumption…

Q: Suppose that in a closed economy GDP is equal to 15,000, government purchases are equal to 3,000,…

A: GDP = 15,000 GOVERNMENT PURCHASE = 3000 Consumption = 10,500 Taxes = 3500

Q: Household saving = $200, Business Saving = $400, Government Purchases = $100, Government transfer…

A: Household saving = $200 Business Saving = $400 Government Purchases = $100, Government transfer…

Q: Suppose GDP is $9 trillion, taxes are $1.9 trillion, private saving is $0.6 trillion, and public…

A: We can utilize the national income identity here. Y= C+ I +G C= Y - I - G I=S National Saving =…

Q: Suppose real GDP is $5,042 billion, taxes collected by the government are $534 billion, government…

A: The policy of the government regarding taxation and government expenditure is known as the fiscal…

Q: The Economist article, "Low interest rates leave savers with few good options", states that savers…

A: Poeple save money for different reasons. Savings allow people to meet future expenses. Setting cash…

Q: Explain/Discuss Three ways that a reduced rate of interest influences real capital investment.

A: Real capital investment is the sum of money which is given to a company to achieve it business…

Q: If net personal taxes rise, what happens to private saving ? Public saving ?

A: In an economy, taxes refers to the expenditure by the people and revenue of the government because…

Q: In each part that follows, use the economic data given to find national saving, private saving,…

A:

Q: The next three questions involve the following situation. Consider a closed economy in which C =…

A: Given  C= $345 billion G= $350 billion Y=$1000 billion Tax T=$100 billion We have to find value of…

Q: Suppose real GDP is $5,136 billion, taxes collected by the government are $535 billion, government…

A: The savings refers to as the level of amount remaining after all the consumption expenditure…

Q: If Congress instituted an investment tax credit, the interest rate would Select one: a.rise and…

A: a. rise and saving would rise

Q: Suppose real GDP is $6,182 billion, taxes collected by the government are $719 billion, government…

A: Given  Real GDP (Y) = $6,182 billion Tax (T) = $719 billion  Government Spending (G) = $820 billion…

Q: Suppose the GDP of Brazil equals 1000, consumption equals 600, the government spending is 150 while…

A: Here we calculate the value of national savings by using the given information and choose the…

Q: Economists in Funlandia, a closed economy, have collected the following information about the…

A: We have the following information- Closed economy Y = 10,000 C = 6,000 T = 1,500 G = 1,700 I =…

Q: real interest rate

A: The real interest rate depicts that interest rate which is adjusted to inflation rate, it does not…

Q: Please explain how a rise in the household saving rate can cause a fall in GDP?

A: Gross domestic product is the monetary value of all total goods and services produced domestically…

Q: Suppose GDP is $8 trillion, taxes are $1.5 trillion,private saving is $0.5 trillion, and public…

A: National income is the total market value of all final goods and services produced in an economy…

Q: In the Table below, what is the value of saving? Disposable Income Consumption Saving $11,400…

A: Based on disposable income, the households make decision on how much to save and how much to…

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.