1. A country's private and public savings are defined as Sh = Y T C, and Sg = T G, respectively, where Y is the GDP, T is the government's tax revenues, C private consumption, and G the government's expenditures.<\/p>
(a) Show that national saving S = Y C G equals the sum of private and public savings<\/p>
(b) Show that if the government increase its expenditures without corresponding increase in taxes, both the public and national saving will decline<\/p>
(c) In case (b), what would happen to the country's trade balance (NX) and its real exchange rate?<\/p>", "transcribed_text": "", "related_book": { "title": "Dynamic Business Law", "isbn": "1260733971, 978-1260733976", "edition": "6th Edition", "authors": "Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/65fbd9d1546a2_249534.jpg", "uri": "\/textbooks\/dynamic-business-law-the-essentials-6th-edition-9781266846694-249534", "see_more_uri": "" }, "free_related_book": { "isbn": "1853469629", "uri": "\/textbooks\/monitoring-assessment-recording-reporting-and-accountability-meeting-the-standards-1st-edition-9781853469626", "name": "Monitoring Assessment Recording Reporting And Accountability Meeting The Standards", "edition": "1st Edition" }, "question_posted": "2024-06-13 02:10:01", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/distinguish-the-three-types-of-damages-available-in-tort-cases", "description": "Distinguish the three types of damages available in tort cases.", "stars": 3 }, { "url": "\/study-help\/calculus-10th-edition\/find-the-area-of-the-surface-over-the-given-region-use-a-computer-algebra-system-to-verify", "description": "Find the area of the surface over the given region. Use a computer algebra system to verify your results. The part of the plane r(u, v) = 4ui - vj + vk, where 0 u 2 and 0 y 1", "stars": 3 }, { "url": "\/study-help\/business-statistics-in-practice\/31-weather-or-not-to-invest-in-equipment-shawn-overgrowth-1983623", "description": "=+31. Weather or not to invest in equipment. Shawn Overgrowth, from Exercise 27, estimates that the probability of a good growing season is 0.70. Based on that:", "stars": 3 }, { "url": "\/blue-corporation-a-manufacturing-company-decided-to-develop-a-new", "description": "Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2014. Blue had the following expenses in connection with the project. The new product...", "stars": 3.5 }, { "url": "\/study-help\/questions\/calculate-the-radial-and-tangential-stresses-at-the-interface-between-9851203", "description": "Calculate the radial and tangential stresses at the interface between Material A and Material B , as well as at the inner and outer surfaces of the vessel. Given: = 0 . 5 r i = 0 . 5 m = 1 . 0 r o =...", "stars": 3.5 }, { "url": "\/study-help\/questions\/please-determine-if-this-risk-can-impact-the-budgeting-and-8784963", "description": "please determine if this risk can impact the Budgeting and Standard Cost Systems and\/or the Capital Investment Analysis, please describe what management could do to minimize the stated risk. Risks...", "stars": 3.5 }, { "url": "\/study-help\/questions\/blue-book-citation-format-sesucfeducourses139681-1assignments7429060-take-some-time-to-5228011", "description": "Blue book Citation Format ses.ucf.edu\/courses\/139681 1\/assignments\/7429060 TAKE SOME TIME TO PRACTICE PUTTING THE FOLLOWING INTO BLUEBOOK CITATION FORMAT: 1. Batman versus Superman is a United States...", "stars": 3.5 }, { "url": "\/study-help\/questions\/the-slope-of-chads-indifference-curvexcaxp-a-is-any-constant-5335969", "description": "The slope of Chad's indifference curvexc=Axp (A is any constant) at point(xp,xc)isA(xp)2 . What is Chad's marginal rate of substitution at consumption bundle(xp,xc)=(15,7)? Group of answer choices...", "stars": 3.5 }, { "url": "\/study-help\/questions\/mallard-incorporated-mi-is-a-small-manufacturing-company-that-makes-1550602", "description": "Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customers' trains for a fee. The company has...", "stars": 3.5 }, { "url": "\/study-help\/questions\/according-to-a-recent-poll-25-of-adults-in-a-2047655", "description": "According to a recent poll, 25% of adults in a certain area have high levels of cholesterol. They report that such elevated levels \"could be financially devastating to the regions healthcare system\"...", "stars": 3.5 }, { "url": "\/study-help\/questions\/the-balanced-scorecard-provides-a-picture-of-the-company-from-5131086", "description": "The balanced scorecard provides a picture of the company from the perspective of internal and external customers, employees, and shareholders in terms of satisfaction, innovations, and profitability....", "stars": 3.5 }, { "url": "\/study-help\/questions\/transcribed-image-text-a-bond-that-pays-5-interest-semiannually-4715379", "description": "A bond that pays 5% interest semiannually has a 6% required rate of return and a price of $1045. Annual interest rates are now projected to decrease by 50 basis points. The bond has a maturity 7...", "stars": 3.5 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/3give-a-real-life-example-of-custom-being-used-in-2887634", "next": "\/study-help\/questions\/you-are-deciding-the-timetable-to-move-into-the-market-2887636" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Economics", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-economics" }, { "name": "1. A country's private and public savings are defined as Sh =", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/1-a-countrys-private-and-public-savings-are-defined-as-2887635" } ], "skill_details": { "skill_id": "12", "skill_name": "Economics", "parent_id": "1" } } } }