National savings is equal to the sum of private savings and public savings. To make our notation a bit easier, we will call national savings S, private savings V, and public savings U. So in other words, S=V +U. If private savings 'V = 0.75S and total savings 'S' equals $4.20 billion, solve for public and private savings. Public savings: $ billion Private savings: $ billion
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- Laurasia has $ 100 billion in Public Savings and $ 600 billion in Private Savings. What is Laurasia's National Savings? $ billionMatch the mathematical term with the correct definition. a.) Y-T-C O Public Savings Private Savings O National Saving: b.) Y-C-G O Public Savings O Private Savings National Savings с.) T-G O Public Savings O Private Savings National SavingsQ2.In each of the following, calculate private, public and national savings and the national savings rate. Given that: Household savings = 200 Business savings = 400 Government purchases = 100 Government transfers = 100 Tax collections = 150 Gross Domestic Product = 2,200
- Q. 1: Consider an economy described as follows:Y = C + I + GY= 8000G = 2500T = 2000C = 1000 + 2/3 (Y – T)I = 1200 – 100ra. Compute public savings, private savings and national savings for this economy.b. Find the equilibrium interest rate.c. Now, suppose that T increased by 500, compute public savings, private savings and national savings for this economy.d. What happens to new equilibrium interest rate.Suppose government spending was $3.90 trillion, tax revenue was $4.50 trillion, GDP was $14.02 trillion, and total consumer spending was $10.75 trillion. Instructions: Round your answers to two decimal places and include a negative sign if necessary. a. If the economy has no exports or imports, what was the national savings? trillion b. How much was public savings? trillion c. How much was private savings? trillionAssume the following information for an imaginary, closed economy. GDP = $120,000; consumption = $70,000; private saving = $9,00%3; national saving = $12,000. (Please write the calculation details) %3D %3D %3D (1) For this economy, what does investment amount to (2) For this economy, what do government purchases amount to? (3) For this economy, what do taxes amount to? (4) Is this economy's government budget surplus or budget defcit? How much it is?
- 2. Saving and investment in the national income accounts The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $900 million. Enter the amount for government purchases. National Income Account Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (1) National Saving (S) = Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. = Value (Millions of dollars) $ 325 375 275 million2. Suppose GDP is $10,000 trillion, taxes are $1,500 trillion, consumption is $6,000 trillion, and government expenditure is $1,700 trillion. Investment is a function of the interest rate such that it is represented by the following equation (in trillions): 3,300 Where is the world real interest rate, expressed as a percentage. Use this information to calculate private savings, public savings, and national savings. I = - 100 * idetermine the following The level of Private savings The level of Public savings The level of national savings
- The data in columns 1 and 2 in the table below are for a private closed economy. (1) Real Domestic Output (GDP - DI), Billions (2) Aggregate Expenditures, Private Closed Economy, Billions (5) Net Exports, Billions (6) Aggregate Expenditures, Private Open Economy, Billions (3) Exports, Billions (4) Imports, Billions $300 $340 $30 $20 350 380 30 20 400 420 30 20 450 460 30 20 500 500 30 20 550 540 30 20 600 580 30 20 650 620 30 20 a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. billion b. Now open up this economy to international trade by including the export and import figures of columns 3 and 4. Fill in the gray-shaded cells in columns 5 and 6. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. What is the equilibrium GDP for the open economy? billion What is the change in equilibrium GDP caused by the addition of net exports? billion c.…ANSWER ALL THE QUESTIONS..... PLEASE IT'S URGENT... In a given year, a country's GDP = $9,841, net factor payments from abroad = $889, taxes = $869, transfers received from the government = $296, interest payments on the government's debt = $103, consumption = $7,863, and government purchases = $140. The country had private saving equal to A) $285. B) $3,850. C) $2,397. D) $2,112. Let’s continue with the information given in the previous question. The country had government saving equal to A) $285. B) $330. C) $453. D) $542. 3. Suppose that national saving is $1,456 billion, investment is $1,945 billion, and private saving is $1,590 billion. How much is the current account balance? A) $489 billion B) $221 billion C) -$221 billion D) -$489 billionIf consumption expenditures are $1800 million, gross investment is $450 million, imports are $350 million, exports are $180 million, government expenditure on goods and services is $120 million, and government transfer payments are $180 million and net taxes are $250 million; a) Calculate the GDP. b) Is there budget deficit or surplus? Calculate. c) How much is the private (household) saving? d) How much is the disposable income? e) Calculate the national savings.