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masha68 [24]
2 years ago
7

A government deficit has increased from 30 to 50. The country's trade deficit is 100 and private savings equal 65 and investment

equal 90. If Ricardian neutrality holds true, after this change in the government's budget, private savings will equal:_____________
Business
1 answer:
viva [34]2 years ago
7 0

Answer:

If Ricardian neutrality holds true, after this change in the government's budget, private savings will equal 40.

Explanation:

S - I = X - M, where

S = Sp + Sg, where

Sp: private saving

Sg: Public saving = T - G

Sp + T - G - I = X - M

or,

Sp - I = (G - T) - (M - X) = Budget deficit - Trade deficit

Initially,

65 - 30 = 90 - 100 = - 10

When budget deficit falls to 50,

Sp - 90 = 50 - 100

Sp = - 50 + 90 = 40

Therefore, If Ricardian neutrality holds true, after this change in the government's budget, private savings will equal 40.

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kirill115 [55]

The relevant cost of building an office building is $9 million.

  • The calculation of the relevant cost of building an office building is as follows:

= Sale value of partially completed building and land + additional labor & material required

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= $9 million

Therefore we can conclude that the relevant cost of building an office building is $9 million.

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2 years ago
____ Do they need engage with this work or is it entirely voluntary? Do they have a direct investment in having access to this i
tigry1 [53]

Answer: Dynamic of need

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8 0
3 years ago
question content area the operating expense recorded from uncollectible receivables can be called all of the following except a.
Lyrx [107]

he operating expense recorded from uncollectible receivables can be called all of the following except c. bad receivables expense.

Customers' outstanding debts for goods or services they have received but haven't yet paid for are referred to as accounts receivable. For instance, the amount owing when clients buy things on credit is added to the accounts receivable. It is a debt incurred as a result of a commercial transaction.

The term "accounts receivable" describes the unpaid bills or cash that customers owe a business. The term describes accounts that a company is entitled to get since it has provided a good or service.

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6 0
1 year ago
Consumption of Fixed Capital$25Government Purchases315US imports260Personal Taxes45Transfer Payments247US Exports249Personal Con
morpeh [17]

Answer:

$1,079 billion

Explanation:

Calculation to determine what Gross domestic product is

Using this formula

Gross domestic product = Personal Consumption Expenditures + Gross Private Domestic Investment + Government Purchases + Net exports

Let plug in the formula

Gross domestic product = $475 + $300 + $315 + ($249 - $260)

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Gross domestic product = $1,079 billion

Therefore Gross domestic product is $1,079 billion

8 0
2 years ago
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