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Macroeconomics 6th Edition by Robert Hall,Marc Lieberman
Edition 6ISBN: 978-1111822354Macroeconomics 6th Edition by Robert Hall,Marc Lieberman
Edition 6ISBN: 978-1111822354 Exercise 5
Return to problem 4. What will happen if consumption spending starts to rise? Assume no change in net taxes. Show the effect on the loanable funds market, and explain what will happen to C , I p , and G. (Note: You won't be able to find specific numbers.)
4. The following data ($ millions) are for the island nation of Pacifica over a year.
a. Use this information to find Pacifica's net taxes, disposable income, and savings.
b. Determine whether the government is running a budget surplus, budget deficit, or balanced budget.
c. Find planned investment by calculating how much is available in the loanable funds market after the government has borrowed what it might need.
d. Does total output equal total spending?
e. Show your answers on a diagram similar to the one in Figure 10 in the chapter.
4. The following data ($ millions) are for the island nation of Pacifica over a year.
a. Use this information to find Pacifica's net taxes, disposable income, and savings.
b. Determine whether the government is running a budget surplus, budget deficit, or balanced budget.
c. Find planned investment by calculating how much is available in the loanable funds market after the government has borrowed what it might need.
d. Does total output equal total spending?
e. Show your answers on a diagram similar to the one in Figure 10 in the chapter.
Explanation
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In a closed economy with government sect...
Macroeconomics 6th Edition by Robert Hall,Marc Lieberman
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