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QUESTION 1 Historical macroeconomic data of the United States shows that over the past six decades government investment as share of GDP of American economy
QUESTION 1
- Historical macroeconomic data of the United States shows that over the past six decades government investment as share of GDP of American economy has been
- a.declining.
- b.stagnant.
- c.rising.
- d.much more volatile than the share of private investment in GDP.
QUESTION 2
- In 2019 in Indonesia, GDP was $1,120 billion, private consumption was $650 billion, government consumption was $100 billion, and investment was $380 billion. How much was net exports?
- a.-$20 billion
- b.-$10 billion
- c.0 billion
- d.$10 billion
- e.$20 billion
QUESTION 3
- In the above question (Question 2), if the budget deficit in 2019 was $25 billion, how much was private savings?
- a.$350 billion
- b.$365 billion
- c.$380 billion
- d.$395 billion
- e.$405 billion
QUESTION 4
- European Union (EU) has created a 750-billion stimulus package to rebuild the recession-hit economies of its members. Assume that this package will be fully implemented in 2021 and will not change government revenues or investment in the EU economy, but it is expected to raise private savings by 500 billion. If these expectations are correct, by how much EU's trade deficit will change in 2021 compared to a situation that would have prevailed in the absence of the stimulus package?
- a.EU's trade deficit will decline by 750 billion.
- b.EU's trade deficit will decline by 500 billion.
- c.EU's trade deficit will not change.
- d.EU's trade deficit will rise by 250 billion.
- e.EU's trade deficit will rise by 500 billion.
QUESTION 5
- Mexico's government wants to reduce the country's trade deficit. It is considering policies that can affect budget deficit, private savings, and investment. Which one of the following would help it towards its goal?
- a.Policies that increase budget deficit.
- b.Policies that reduce private savings.
- c.Policies that reduce investment.
- d.all of the above.
- e.none of the above.
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