Why must the national income of a closed economy equal the national expenditures of that economy? What

Question:

Why must the national income of a closed economy equal the national expenditures of that economy? What separates the two concepts in an open economy?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

See More Books

Question Posted: May 28, 2012 03:58 AM

See More Questions

Use the classical model of a closed economy to predict how each of the following shocks should affect a nations real aggregate income (Y), national saving (S), investment (I), and interest rate (r)....
Why is domestic monetary policy ineffective in an open economy under a fixed exchange rate regime?
Two types of survey questions are open questions and closed questions. An open question allows for any kind of response; a closed question allows for only a fixed response. An open question and a...
A ball is attached to one end of a wire, the other end being fastened to the ceiling. The wire is held horizontal, and the ball is released from rest (see the drawing). It swings downward and strikes...
For each of the following activities, indicate what the company owns (the account and effect) and what the company owes (the account and effect) using the fundamental accounting equation. Be sure to...
A manufacturer produces a ferrite material with = 750o, = 5o, and = 106 S/m at 10 MHz. (a) Would you classify the material as lossless, lossy, or conducting? (b) Calculate and . (c) Determine the...
Discuss why employment disclaimers are important to the employer.
The U.S. government subsidizes flood insurance because those who want to buy it live in the flood plain and cannot get it at reasonable rates. What inefficiency does this create?
(a) Make a marketing communication campaign for this product by describing the detail of the campaign (the key campaign message + communication objective + marketing communication tools such as...
Consider the following solution to the mutual-exclusion problem involving two processes P0 and P1. Assume that the variable turn is initialized to 0. Process P0's code is presented below. /* Other...
What is the meaning of an account labeled statistical discrepancy or errors and omissions? If this account is a credit, what does that imply about the measurement of other items in the balance of...
Explain why private national saving plus government saving equals the current account of the balance of payments.
Suppose the following information is available for a given pure substance: Outline the procedure that should be followed to develop a table of thermodynamic properties comparable to Tables 1, 2 and 3...
why does depression appears to lower the activation of the sympathetic nervous system
A 3-month put has a strike price of $45.00 and an option premium of $0.80. The underlying stock is selling for $45.10 per share. What is the time value of the put?
Dividend paid Rs .1/- in the first year, next year's dividend grow at 5% , and stock will be sold after 1 year at 13. 45, required rate of return is 13.2 %, what is the fair value of stock?
How can the principles and practices of indigenous restorative justice be integrated into the broader justice system to foster reconciliation, provide meaningful support to victims and offenders, and...
1. Show that for f(x) = 2 + e* + (e 1)sin (TX). - 2 f'(x) is 0 at least once in the interval [0, 1]. 2. Let f(x) = (1-x)-1 and x0 = 0. Find the nth Taylor Polynomial P(x) for f(x) about xo. Find a...
What is the voluntary-undertaking doctrine?
In a nonmagnetic medium, E = 50 cos (10 9 t 8x) a y + 40 sin (10 9 t 8x) a z V/m find the dielectric constant r and the corresponding H.
Calculate z(2, 3, 1), where (x, y, z) = xyz.
Providence Co. needs dollars. Assume that the local one year loan rate is 15%, while a one year loan rate on euros is 7%. By how much must the euro appreciate to cause the loan in euros to be more...
a. Discuss the corporate control of your business. Explain why your business in Mexico is exposed to agency problems. b. How would you attempt to monitor the ongoing operations of the business? c....
Recall that your Mexican business invoices in Mexican pesos. a. You are already aware that a decline in the value of the peso could reduce your dollar cash flows. Yet, according to purchasing power...
Given the function. f(x) = ln (2x+3x) Compute f'(x). Enter your answer rounded to the nearest tenth
A motor-cycle manufacturing company desires a profit of $600,000. The fixed costs are $800,000. The unit selling price of the motor-cycle is $750 and the variable cost per unit is $680. How many...
3. ZR Corporation's stock has a beta coefficient equal to 0.8 and a required rate of return equal to 11 percent. If the expected rate of return on the market is 12.5 percent, what is the risk-free...

Why must the national income of a closed economy equal the national expenditures of that economy? What

Question:

Step by Step Answer:

In a closed economy the value of the final expenditures on all goods and services must be th...View the full answer

International Financial Management

Students also viewed these Corporate Finance questions