Physical capital is purchased through investment

This preview shows page 2 - 6 out of 83 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Economics
The document you are viewing contains questions related to this textbook.
Chapter 25 / Exercise 13
Exploring Economics
Sexton
Expert Verified
12.Physical capital is purchased through investment spending, which in turn is mostly Page 2
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Economics
The document you are viewing contains questions related to this textbook.
Chapter 25 / Exercise 13
Exploring Economics
Sexton
Expert Verified
financed out of:
13.Private savings equals:
Use the following to answer questions 14-17:Scenario: Closed Economy S= GDP is $12 trillion this year in a closed economy. Consumption is $8 trillion and government spending is $2 trillion. Taxes are $0.5 trillion.14.(Scenario: Closed Economy S = I) Look at the scenario Closed Economy S = much is private saving?II. How
15.(Scenario: Closed Economy S = I) Look at the scenario Closed Economy S = I. the government budget balance?What is A)a surplus of $1.5 trillionB)a deficit of $1.5 trillionC)a surplus of $0.5 trillionD)a deficit of $0.5 trillion
16.(Scenario: Closed Economy S = I) Look at the scenario Closed Economy S = much is national saving?I. How
17.(Scenario: Closed Economy S = I) Look at the scenario Closed Economy S = I. How Page 3
much is investment spending?
18.In a simple closed economy, all investment spending must come from:
19.The budget balance equals:A)taxes plus government spending.B)taxes minus government spending.C)consumption plus investment.D)imports minus exports.
20.A budget surplus exists when:
21.National savings is the sum of private savings and:
22.In a closed economy, all investment spending must come from:
23.The savings–investment spending identity says that:A)each person in the economy must invest as much as he or she saves.B)savings and investment spending are always equal for the economy as a whole.C)savings must equal government investment for the economy as a whole.
Page 4
D)each person in the economy must save as much as he or she invests.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture