Question: If the government imposes a mandatory saving program, answer the following: a. Will the supply of savings shift right, left, or remain the same? b.

If the government imposes a mandatory saving program, answer the following: a. Will the supply of savings shift right, left, or remain the same? b. Will the equilibrium interest rate increase, decrease, or remain the same? c. Will the equilibrium quantity of investment increase, decrease, or remain the same? d. Will the long run economic growth rate increase, decrease, or remain the same? Explain your answer. e. Will consumption in the present increase, decrease, or remain the same? Explain your answer. f. Will consumption in the future increase, decrease, or remain the same? Explain your answer.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

If the government imposes a mandatory saving program will the supply of saving shift right left or remain the same? Will the equilibrium interest rate increase decrease or remain the same? Will the...

Question 1(Multiple Choice Worth 1 points) (02.06 MC) Suppose Country 'X' is producing an output of 300 units of a certain good at $3 per unit in 2017. With time, the price level rises from $3 per...

Question 1 Assume that nominal income increases by 5% and the price level increases by 3%, which of the following is true? Real GDP must have decreased. The impact on real GDP is indeterminate. The...

HI PLEASE ANSWER ALL 78 MULTIPLE CHOICE QUESTIONS THANK YOU 1. Which of the following will lead to a decrease in both equilibrium price and quantity in a market? a)A decrease in demand b)An increase...

Subsidies for construction of : [ Choose ] w factories BU|Id|ngl infrastructure such as [ Choose ] v road, bridges, and dams. Restrictions on the [ Choose | v development of forested land Falctorles...

Which of the following statements about the term of a bond is correct? a. Term refers to the various characteristics of a bond, including its interest rate and tax treatment b.lThe term of a bond is...

1. Private saving is the ______. theory that government borrowing drives up the interest rate and lowers consumption practice of using corporate profits for capital investment rather than dividend...

Help solve this....ONLY ANSWER WITH EXPLANATION will be accepted 5. Which of the following is included in the 8. Which of the following workers is most likely to investment component of real gross...

please help EC 201-Principles of Macroeconomics Due Tuesday, 05/12/20 at 6pm Final Exam-Spring 2020 NAME(Please Print):__________________________________________________________ Instructions: Please...

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

Do you think leadership style is fixed and unchangeable for a leader or flexible and adaptable? Discuss.

Refer to Exercise 7.S.10. Summary statistics for the pH measurements are given in the following table. We wish to investigate the relationship of oocyte pH to progesterone response using a t test at...

12. Table 13.11 contains some information on common gases. Use the information to answer the questions which follow. (a) Which gas may be detected by its colour? (b) Which gases cannot be collected...

Problem 9 - 2 4 ( Static ) Comprehensive Variance Analysis [ LO 9 - 4 , LO 9 - 5 , LO 9 - 6 ] Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be...

Improving creative problem-solving ability.

1. Discuss the following statements: (a) A circle becomes a straight line when viewed on a very small scale. (b) Breaking patterns creates change.

2. Develop your own loop models for the following conditions. At least one model shall be developed for each of the points under (a-j) a) If A shows anger towards B, what will Bs reaction be? b) What...