Same amount of net private saving

Assignment Help Business Economics

Reference no: EM13889078

Suppose that Country B has the same amount of net private saving in Year 1 and in Year 2. However, the government of Country B has a budget surplus of $200 billion in Year 1 and a budget surplus of $100 billion in Year 2. Other things equal, this tends to cause for Country B,

a. the demand for loanable funds curve to shift to the right

b. the demand for loanable funds curve to shift to the left

c. the supply of loanable funds curve to shift to the right

d. the supply of loanable funds curve to shift to the left

Reference no: EM13889078

Questions Cloud

Economic profit involves explicit costs : Since there is free mobility of resources, the perfect competitor can freely move in and our of a given perfectly competitive market. Economic profit involves explicit costs, while accounting profits involve implicit costs. The demand which a monopol..

A tax authority must decide on social insurance scheme : A tax authority must decide on a social insurance scheme. It knows that half the population will unemployed this year with only $400 in income from odd jobs. The other half will earn $40000 each. The tax authority taxes everyone with income at a flat..

What is the growth rate of nominal GDP : Use the following economy for the next 15 questions. Use 2009 as your base year for any calculations where a base year is needed. What is the growth rate of nominal GDP for 2008? What is the inflation rate for 2008? What is the inflation rate for 20..

Study of intertemporal utility maximization : In our study of intertemporal utility maximization, everything (initial and ending wealth, interest rate, and consumption) in the budget constraint is expressed in real terms. Reformulate the budget constraint in nominal terms and show that for a two..

Same amount of net private saving : Suppose that Country B has the same amount of net private saving in Year 1 and in Year 2. However, the government of Country B has a budget surplus of $200 billion in Year 1 and a budget surplus of $100 billion in Year 2. Other things equal, this ten..

Calculate the size of reduction in consumers surplus : Trade restrictions raised the price of sugar by 2.57 cents. Without the restrictions, U.S. consumers would have purchased 23.3 billion pounds of sugar; with them, they purchased 22.4 billion pounds. How much of a loss do they impose on U.S. consumers..

What is optimal consumption bundle : Jimmy’s preferences can be represented by the following utility function U = 2x + y. WealsohavePx =3,Py =3andW=100. What is Jimmy’s optimal consumption bundle? Calculate Jimmy’s income elasticity of demand for good x.

Why is not exclusive use of method three cost effective : Suppose you need to remove 70 exotic fish from a lake into which they were unintentionally introduced. You have three possible removal methods, methods 1,2 and 3. How much of each method should you use to achieve the removal cost effectively. Why isn..

Using different lighting in a studio to create an effect : Considering that photography is a medium that can convey a million emotions in one single image, is it ethical for a photographer to draw more emotional response by digitally altering an image? Is this any different than using different lighting i..

User Account

All Pages