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(2 marks) Figure 14.2 shows the flows of income FIGURE 14.2 and expenditure in an economy. In Chapter Checkpoint Assignable Problem 10 2007, O was

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(2 marks) Figure 14.2 shows the flows of income FIGURE 14.2 and expenditure in an economy. In Chapter Checkpoint Assignable Problem 10 2007, O was $1,000 billion, U was $250 billion, W was $650 billion, R was $250 billion, and Z was $50 billion. Calculate House Financial holds W markets investment and saving. N (4 marks) Factor Governments Goods Rest of Figure 14.2 shows the flows of income markets markets world and expenditure in an economy. In 2008, X was $2 trillion, R was $3 Firms trillion, Z was -$1 trillion, O was $10 trillion, and U was $4 trillion. Calculate saving and consumption expenditure. (4 marks) What are the four determinants of consumption? Also, explain how a change in each would bring about a reduction in consumption. (4 marks) Explain any differences between actual investment and planned investment. Also, is it possible for actual investment to be greater than planned investment? If so, explain.

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