The fictional country of Gallia has collected GDP data for its current business year. Its economy...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The fictional country of Gallia has collected GDP data for its current business year. Its economy is closed, i.e., NX= 0, and the government is currently running a budget surplus. Gallia's economists have identified i the following information: Y=335,000.00 C=201,000.00 T= 30,150.00 G= 56,950.00 Furthermore, its investment (1) can be described using the following function: I= 110, 550.00 3,350.00 x freats where freal denotes Gallia's real interest rate. We further assume that the real interest rate can be interpreted as a percentage value. [Note that you are expected to show your work. Partial credit will be awarded for incomplete answers.] Given the information above, 1. find private saving, public saving, investment, and national saving. 2. findThat is, the equilibrium real interest rate at which Qs = QD- 3. what happens to Gallia's saving and investment as real drops by 5 percentage-points? What is the effect on the equilibrium market quantity (Q) of loanable funds and why does it make sense? [Hint: You are not required to show mathematical proof.] The fictional country of Gallia has collected GDP data for its current business year. Its economy is closed, i.e., NX= 0, and the government is currently running a budget surplus. Gallia's economists have identified i the following information: Y=335,000.00 C=201,000.00 T= 30,150.00 G= 56,950.00 Furthermore, its investment (1) can be described using the following function: I= 110, 550.00 3,350.00 x freats where freal denotes Gallia's real interest rate. We further assume that the real interest rate can be interpreted as a percentage value. [Note that you are expected to show your work. Partial credit will be awarded for incomplete answers.] Given the information above, 1. find private saving, public saving, investment, and national saving. 2. findThat is, the equilibrium real interest rate at which Qs = QD- 3. what happens to Gallia's saving and investment as real drops by 5 percentage-points? What is the effect on the equilibrium market quantity (Q) of loanable funds and why does it make sense? [Hint: You are not required to show mathematical proof.]
Expert Answer:
Answer rating: 100% (QA)
1 Private saving S Y C T 33500000 20100000 3015000 10385000 Public saving T G 3015000 5695000 268000... View the full answer
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
Posted Date:
Students also viewed these economics questions
-
On January 1, 2015, Wilke Corp. had 497000 shares of common stock outstanding. During 2015, it had the following transactions that affected the Common Stock account: Feb 1 Issued 144,000 shares March...
-
Record the following transactions for Sandwich Co. in the general journal. 2010 May 1 Received a $7,500, 1-year, 10% note in exchange for Julia Gonzalezs outstanding accounts receivable. Dec. 31...
-
Record the following transactions for a perpetual inventory system in general journal form. a. Sold merchandise on account to Southridge Manufacturing, Inc., invoice no. 6910, $ 1,815.24. The cost of...
-
Which of the following domains are closed and which are bounded? (a) {(x, y) R: x + y 1} (b) {(x, y) = R: x + y <1} (c) {(x, y) = R: x 0} (d) {(x, y) R: x > 0, y > 0} (e) {(x, y) = R: 1 x 4,5 y 10}...
-
The following summary of data is for subgroups of n = 3 for a 10-day period: a. Compute control limits for the range. b. Is there evidence of special cause variation in (a)? c. Compute control limits...
-
The block diagram representation of a system model is presented in Figure 4.33, where \(x_{1}\) and \(x_{2}\) denote the two state variables. a. Derive the state-space form directly from the block...
-
Refer to the information in Exercise 17-4. Required 1. Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming...
-
Included in the December 31, 2006 Jacobi Company balance sheet was the following stockholders equity section: The company engaged in the following stock transactions during 2007: Jan. 2 Paid the...
-
2. (7pts) Give an example of a 44 matrix A which have the following properties: (a) A is lower triangular. All its entries are integers. (b) A has two distinct eigenvalues. Each eigenvalue is a digit...
-
A convenience store is considering changing its layout to encourage impulse buying. The triangular flow matrix below gives the measure of association between different product groups ( e. g., beer,...
-
Western Technology Ltd (WTL) is an encouraged enterprise established in Western region and is a value added tax (VAT) general taxpayer. The provisional income statement (extract) for the year 2020...
-
BEAM047-Exam Paper_BEAM047R-AUG22 (1).pdf - Adobe Acrobat Reader DC (64-bit) File Edit View Sign Window Help Home Tools 26C Sunny BEAM047-Exam_Pa... x 2 / 4 125% wwww The possible returns of stocks...
-
James and Helena are 43 years old both and have three children. They have an annual household income of 85,000 and they have mortgage. With their current financial situation, what type of life...
-
What are the political and economic risks of the United States?
-
A project requires an initial investment of $2,000,000 and produces an annual inflow of $500,000 at the end of years 1 - 7, and an inflow of $600,000 at the end of year 8. What is the NPV of this...
-
During this phase, the actual design and development of a new product is done. This is also the step where the full business plan is developed and the first initial customer feedback is sought out...
-
What's a good question to ask in a discussion on visual vocabulary?
-
For each equation, (a) Write it in slope-intercept form (b) Give the slope of the line (c) Give the y-intercept (d) Graph the line. 7x - 3y = 3
-
Pexly Industries purchased a copier system with a cost of $ 62,000 and a salvage value estimated at $ 2,000. It was expected that the copier would last four years, over which time it would produce...
-
How much will an investment of $ 9,000 be worth at the end of five years if it earns? A. 3 percent interest compounded monthly? B. 4 percent interest compounded monthly? C. 3 percent interest...
-
What are the four key dividend dates? Why is each important?
-
In a(n)________ numbering system, all numeric values are written as sequences of 0s and 1s. a. hexadecimal b. binary c. octal d. decimal
-
What is a program?
-
List the five major components of a computer system.
Study smarter with the SolutionInn App