Savings and investment according to the classical economists

Assignment Help Business Economics

Reference no: EM13734318

The economy is made up of C and I and is currently at full employment. If consumption is $5 trillion while savings is $1 trillion, what is current investment according to the Classical economists? Suppose consumption falls by $500 billion what will happen to savings and investment according to the classical economists?

Reference no: EM13734318

Questions Cloud

Should international transportation costs decrease : For the United States, empirical studies indicate that over the past two decades the cost of international transportation relative to the value of U.S. imports has: Should international transportation costs decrease, the effect on international trade..

Equilibrium price-quantity and price elasticity of demand : The demand for a product is Qd = 100 - 4P +3Px and supply is Qs = 10 +2P, where Q is the quantity of the product in thousands of units, P is the price of the product, and Px is the price of another good. When Px = 40, the equilibrium price of the pro..

Explain the impact on the demand curve-supply curve or both : In the market for tacos, explain the impact on the demand curve, supply curve, or both. If the market started in equilibrium, determine if the new market equilibrium price and quantity are above, below, or indeterminate with respect to the starting e..

According to ricardo the immediate basis for trade stems : Under Smith's theory of international trade a country will completely specialize in the good it has an absolute advantage in producing. According to Ricardo the immediate basis for trade stems from _________________ cost differences between nations.

Savings and investment according to the classical economists : The economy is made up of C and I and is currently at full employment. If consumption is $5 trillion while savings is $1 trillion, what is current investment according to the Classical economists? Suppose consumption falls by $500 billion what will h..

Savings account to fund : If the university's school of engineering can earn 4% on it's investments, how much should be in it's savings account to fund one $5000 scholarship each year for 10 years?

What will be the amount of that future repayment : Juno Manf. Company has decided to build an expansion of its manufacturing facility that will cost $63,022. It has arranged thru the small business association to borrow $36,281 from Allied Bank at an annual interest rate of 6.27%/yr. It will use mone..

Find that the parking lot cost index : You have been asked to estimate the cost today of a 2,500 ft2 parking lot. You research and find that parking lots have a power-sizing exponent of 0.55 and that your company built a similar 1,000 ft2 lot 5 yrs ago that cost $50,000. You also find tha..

Financial statements due to an error in accounting principal : Locate an article from a financial periodical from the past 2 years about a company that restated its financial statements due to an error in accounting principal. Examples of periodicals are CFO and Journal of Accountancy.

User Account

All Pages