Examine the effects of each of the given on national saving

Assignment Help Microeconomics
Reference no: EM13456181

Analyze the effects of each of the following on national saving, investment, and the real interest rate. Explain your reasoning and illustrate it with an appropriate diagram.

(a) Consumer confidence falls, so consumers decide to consume less and save more at every level of the real interest rate.

(b) The government announces a larger, one-time bones payment to veterans returning from a war. The bonus will be financed by additional taxes levied on the general population over the next five years.

(c) The government introduces an investment tax credit (offset by other types of taxes, so total tax collections remain unchanged)

(d) A new technology breakthrough increases the future marginal product of capital and expected future income.

Reference no: EM13456181


Write a Review


Microeconomics Questions & Answers

  How can we measure the opportunity cost of producing a good

how can we measure the opportunity cost of producing a good? using a bowed outward production possibilities curve

  An increase in the price of beef on one’s decision to buy

A change in the meeting time of the introductory one’s decision to go swimming economics course from 11:00 A.M. to 7:30 A.M. on one’s decision to attend the lectures

  For figure demand with zero transaction costs is q1s 50-p

for figure demand with zero transaction costs is q1s 50-p and supply is qs -7 2pa verify all of the prices and

  How would this apple-a-day law affect the demand and

Suppose that the president proposes a new law aimed at reducing heath care costs: All Americans are to be required to eat one apple daily.

  The government and social responsibility

The Government and Social Responsibility

  Determine firm profit-maximizing output

Suppose that perfectly competitive firm faces the market price (P) $5 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output (Q) level of 1,500 units.

  What is second degree price discrimination

Graph the typical consumer’s demand curve. Use your graph to figure out what price Philadelphia Electric should charge for the first 400 Kilowatts used. What should it charge for the next 400 Kilowatts? the next 400?

  Cool-aire corporation manufactures line of room air

cool-aire corporation manufactures a line of room air conditioners. its break-even sales level is 33000 units. sales

  Find out expected value and standard deviation for npw of

dayton metal corporation dmc a medium-sized manufacturer of fabricated metal parts is considering whether to enter the

  Question about marginal benefit curves

When negative or positive externalities exist economists say that market has unsuccessful to make the right amount of the good at the right price. What do economists mean through this?

  Create the graph showing supply and demand in tablet case

as an economist for abc plastics your boss has asked you to respond to some questions she has regarding the companys

  What type of barriers to entry exists in this industry

What type of barriers to entry exists in this Industry and how did Virgin Mobile manage to enter into this industry and justify why it is beneficial for existing firms to attempt to create such barriers.

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