Calculate national saving-private saving and public saving

Assignment Help Business Management
Reference no: EM131434101

Let the following equations characterize an economy: (note the addition of a tax rate on output)

Y = C + I + G

Y = 400

C = 60 + 0.8(Y - T)

I = 20 - r

G = 100

T = 0.4Y

Where: Y=output, C=consumption, I=investment, G=government spending, T=taxes, r = real interest rate

a. Calculate national saving, private saving, and public saving.

b. Obtain the mathematical expression for the AD in this particular economy.

c. If Government spending increases to 120, what is the effect on income? Use the multiplier and calculate the increase in Y.

Reference no: EM131434101

Questions Cloud

Keynesian income-expenditure model : Explain how the equilibrium level of output and employment is determined in the Keynesian income-expenditure model (or multiplier model). Then explain how the model overcomes objections to a fiscal policy of a deficit-financed expansion in governm..
Keynesian income-expenditure model : Explain how the equilibrium level of output and employment is determined in the Keynesian income-expenditure model (or multiplier model). Then explain how the model overcomes objections to a fiscal policy of a deficit-financed expansion in governm..
Discussing at least two different types of operating systems : Write an essay using Microsoft Word identifying and discussing at least two different types of operating systems. Include the advantages, disadvantages, and security concerns of each type of operating system.
Banking system potentially lend : A bank has total checking deposits of $4 million, with total reserves of $500,000. If the reserve ratio 10%, how much can this bank lend? How much could the banking system potentially lend? Please show work
Calculate national saving-private saving and public saving : a. Calculate national saving, private saving, and public saving. b. Obtain the mathematical expression for the AD in this particular economy.
Calculate national saving-private saving and public saving : a. Calculate national saving, private saving, and public saving. b. Obtain the mathematical expression for the AD in this particular economy.
Roots of modern terrorism including various terrorist groups : Create an Annotated Bibliography on the following objectives. Provide a one paragraph summary of five different sources for a total of five paragraphs. Each paragraph must be a minimum of 200 words in length, with appropriate APA style writing.
Characteristic of many colonial situations : Since the nineteenth century, there has been a tendency in the United States to classify offspring of racially mixed couples as belonging to the race of the parent with the lowest racial status. What is this called?
Promote research-development : Often governments grant monopolies to firms to promote Research & Development or because having one supplier for a product makes more economic sense? Can you think of a specific example?

Reviews

Write a Review

Business Management Questions & Answers

  Theories and current multinational organizations

Using course theories and current multinational organizations that have locations in several countries, convey your own thoughts on the subject and address the following:

  Individual ethics in development and understanding

Discuss the relationship between group and individual ethics with regard to Development and Understanding.

  What is erp system architecture

1.What is ERP system architecture? And what is necessary for the ERP implementation to be successful?2.List five of the major functional modules of ERP and explain why it is important to have good enterprise system architecture?

  Why do you think functional silos are not appropriate for

1. list the horizontal and vertical levels of systems that exist in organizations.2. describe at least five steps

  Explain management believes that interest rates

Explain Management believes that interest rates are unreasonably low and decides to execute a dividend recapitalization

  Decision making methodologies

Decision Making Methodologies  - Explain in detail the various decision making methodologies in management

  Discuss what competitive information do you think

For this week's discussion, pick an organization you are familiar with and discuss what competitive information do you think that organization should keep in mind when planning to grow and how would you go about setting product strategy for them?

  Terminate a relationship with overseas intermediaries

Why is exporting frequently considered the simplest way of entering foreign markets and is thus favoured by SMEs?- What procedures should a firm follow in selecting a distributor?

  Financial statements of an enterprise

An audit in which the auditor examines the financial statements of an enterprise to express an opinion as to whether or not they reflect a true and fair view of its state of affairs and working results is known as?

  Organizations prepare employees for change

How do organizations prepare employees for change?

  Contemporary leadership training practices

Describe some of the contemporary leadership training practices. Bringing together the concepts and findings from other readings.

  Creation of inflation by a central bank

What is the inflation tax, and how might it explain the creation of inflation by a central bank? Explain how inflation affects savings and investment.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd