Question

if in the economy business saving equals $240 billion, household saving equals $15 billion and government...

if in the economy business saving equals $240 billion, household saving equals $15 billion and government saving equals-$150 billion,what is the value of national saving

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Private savings equal to the sum of household and business savings.

Public Savings or Government Savings is the total savings of government. It is equal to Taxes minus government spending.

Savings from private sector plus from public sector are equal to national savings.

National Savings = Private Savings + Government Savings

Private Savings = Business Savings + Household Savings

As a result,

National Savings = Business Savings + Household Savings + Government Savings

National Savings = $240 + $15 - $150

= $105 Billions

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.Suppose that for a particular economy and period, investment was equal to RM 200 billion, government...
1.Suppose that for a particular economy and period, investment was equal to RM 200 billion, government expenditure was equals to 100, net taxes[TA] were fixed at 150 and consumption was represented by below function C= 20+0.6YD a. What is the level of equilibrium income? b. What is the value of government expenditure multiplier? c. What is the value of the tax multiplier? d. If investment decline by RM100 billion, what will be the new equilibrium 2.Assume investment = 100, government...
We have the following information for an economy. All data are in billion dollars. Category Value...
We have the following information for an economy. All data are in billion dollars. Category Value Compensation of Employees 6,500.00 Personal Consumption Expenditure 9,180.00 Indirect Taxes minus Subsidies 750.00 Rental Income 600.00 Net Business Transfer Payments 0.00 Corporate Profits 1,100.00 Net Exports −450.00 ​Proprietors' Income 780.00 Surplus of Government Enterprises 0.00 Personal Saving 510.00 Net Interest 470.00 Calculate National Income for this economy. National Income​ = ​$nothing billion. ​(Enter your response as an​ integer.)
1. In a closed economy, suppose GDP equals $21 trillion, consumption equals $13 trillion, the government...
1. In a closed economy, suppose GDP equals $21 trillion, consumption equals $13 trillion, the government spends $7 trillion and has a budget deficit of $800 billion. Find government saving, taxes, private saving, national saving, and investment. Please show clearly how you calculated your final answers, and box/circle your final answers (in trillions of dollars) with proper labels No credit will be given to an answer in incorrect units, in notations that differ from what’s used in the lectures, without...
In a closed economy, without the government, the consumption expenditure equals $5,000 and the investment expenditure...
In a closed economy, without the government, the consumption expenditure equals $5,000 and the investment expenditure equals $2,000. If the population of the economy is 200, the per capita national income is: A. $10. B. $17. C. $35. D. $50. In a closed economy without the government, income equals: A. aggregate consumption. B. aggregate savings. C. aggregate savings plus aggregate investment. D. aggregate savings plus aggregate consumption. The savings rate designates: A. the fraction of income that households save. B....
a sales tax cut in a small open economy with a trade surplus decrease government saving,...
a sales tax cut in a small open economy with a trade surplus decrease government saving, private saving and national saving true or false
The economy is at the equilibrium level of output. Government spending is increased from $200 billion...
The economy is at the equilibrium level of output. Government spending is increased from $200 billion to $250 billion and this increase is financed by increasing taxes from $100 billion to $150 billion and, what will be the new equilibrium level of income MPC= 0.9
Consider a closed economy. Suppose GDP equals $5 trillion, consumption equals $3.25 trillion, the government spends...
Consider a closed economy. Suppose GDP equals $5 trillion, consumption equals $3.25 trillion, the government spends $1 trillion and has a budget deficit of $0.15 trillion. Question14: Use the numbers from the preceding context, but now suppose that the government cuts taxes by $500 billion and that the consumers save 4/5 of the tax cut and spend the other 1/5. Find out the numerical values of taxes,public saving,private saving, and investment,respectively,after the taxcuts. a.0.85, 0.15,-0.90, 0.75 b.0.75,-0.65, 1.40, 0.65 c.0.35,...
If the MPC is 0.80 and the government increases spending on cancer research by $15 billion....
If the MPC is 0.80 and the government increases spending on cancer research by $15 billion. (a) What is the value of the initial impact on real GDP? What is the value of the total impact on real GDP? What effect do you think a $50 billion increase in government spending will have on the economy? (b) Assume the MPC is 0.80 and policy makers have targeted real GDP to increase by $200 billion. By how much must taxes be...
Suppose the economy is in long-run equilibrium when GDP declines by $50 billion. The government wants...
Suppose the economy is in long-run equilibrium when GDP declines by $50 billion. The government wants to increase its spending in order to stimulate the economy and avoid a recession. Assume that the crowding-out effect is always half as strong as the multiplier effect, and the MPC equals 0.9. According to Keynesian theory, how much additional government spending is needed to restore economic output? $10 billion $45 billion $50 billion $100 billion
Suppose GDP equals $10 million, consumption equals $6.5 million, the government spends $2 million and has...
Suppose GDP equals $10 million, consumption equals $6.5 million, the government spends $2 million and has a budget deficit of $300 million. Find public saving, taxes, private saving, national saving, and investment.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT