NEED A PERFECT PAPER? PLACE YOUR FIRST ORDER AND SAVE 15% USING COUPON:

SOLVED

41) If net taxes fall by $80 billion, we would expect A) the government deficit to fall by $80 billion. B) household saving to rise by $80 billion. C) household saving to rise by less than $80 billion. D) household saving to fall by more than $80 billion. 42) Which of the following will not occur as the result of a decrease in net taxes? A) decreased household saving B) decreased government saving C) a shift to the left of the supply curve for loanable funds D) all of the above 43) If, in an economy experiencing inflation, the government decided to tax real interest income rather than nominal interest income, this change would cause the real interest rate to ________ and the equilibrium quantity of loanable funds to ________. A) fall; rise B) fall; fall C) rise; fall D) rise; rise 44) Countries without well-developed financial systems are able to sustain high levels of economic growth. 45) In an open economy, there is interaction with other economies in terms of both trading of goods and services and borrowing and lending. 46) If there is public dissaving, investment spending in the economy will decline, holding everything else constant. 47) An increase in the real interest rate will decrease consumption and investment. 48) Use the equations for public and private saving to demonstrate how total saving in the economy equals investment. 49) Consider the following data for a closed economy: a.Y = $12 trillion b.C = $8 trillion c.I= $3 trillion d.TR = $2 trillion e.T = $3 trillion 50) Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth. 51) Explain and show graphically how an increase in household saving affects the equilibrium interest rate and the equilibrium quantity of loanable funds. 52) Explain and show graphically how government deficits can “crowd out” private investment. 53) Explain and show graphically how an increase in government spending affects the equilibrium interest rate in the market for loanable funds. 54) If net taxes rise by $150 billion would you expect household saving to fall by $150 billion, by more than $150 billion, or by less than $150 billion?Â

Solution:

15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.