Savings is equal to?
For unlimited access to Homework Help, a Homework+ subscription is required.
National savings is equal to the sum of private savings and public savings. To make our notation a bit easier, we will call national savings S, private savings V, and public savings U. So in other words,
S = V + U.
If private savings 'V' = 0.75S and total savings 'S' equals $4.20 billion, solve for public and private savings.
Public savings: $ billion
Private savings: $ billion
The fundamental relationship between savings and investment spending in an economy is that...
-investment spending and savings are always equal.
-savings will decrease as investment spending increases.
-savings will increase as investment spending decreases.
-investment spending promises higher financial returns than savings.
1. The government saves when it:
A) Has a balanced budget
B) Has a budget deficit.
C) Has a budget surplus.
D) Borrows by selling bonds.
2. In an open economy, total investment spending is equal to:
A) National savings plus the net capital inflow
B) Private savings plus national savings plus net capital inflow.
C) Private savings plus net capital inflow.
D) National savings minus private savings minus net capital inflow.
3. Net capital inflow is equal to:
A) GDP plus exports minus imports.
B) The growth in capital stock minus investment spending.
C) Foreign direct investment.
D) The total inflow of foreign funds minus the total outflow of domestic funds.