In a closed economy investment spending i must equal

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Microeconomics: Private and Public Choice
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Chapter 14 / Exercise 6
Microeconomics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
Expert Verified
24.In a closed economy, investment spending, I, must equal:A)GDP – C – G.B)GDP – C.C)GDP – CGD)GDP – [C × G
X.
].25.The government saves when it:
26.The government saves when:
27.National savings in a closed economy is all of the following EXCEPT:
28.One difference between a closed and an open economy is that:A)in the latter, foreign savings complement domestic savings in financing investment spending.B)in the latter, the government is more open to the idea of financing investment spending than in the former.C)in the former, foreign savings complement domestic savings in financing investmentspending.D)in the former, foreign savings finance more investment spending than in the latter.
29.The savings–investment spending identity says that savings and investment spending are:
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Microeconomics: Private and Public Choice
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Chapter 14 / Exercise 6
Microeconomics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
Expert Verified
30.In a closed economy, the savings–investment spending identity is:
).
G).
G.31.In a closed economy government spending was $30 billion, consumption was $70 billion,taxes were $20 billion, and GDP was $110 billion this year. Investment spending was $10billion. As a result:
32.To help increase investment spending, the government can:A)lower taxes on consumption, so that disposable income rises.B)lower taxes on the returns from savings, so that total savings increase and the interest rate falls.C)raise taxes on the returns from bonds while lowering taxes on stock dividends.D)lower taxes on investment spending while raising taxes on savings, so that total tax revenue remains constant.

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