1. United States : 2013 real GDP 15,779.54, 2014 : 16,152.7
2. Canada : 2013 real GDP 1,738.66, 2014 : 1,781.96
3. Japan : 2013 real GDP 464,321.4, 2014 : 495,576.9
4. Italy: 2013 real GDP 1,549.08, 2014 : 1,539.33
5. Australia : 2013 real GDP : 1,473.74, 2014: 1,512.09
6. United Kingdom : 2013 real GDP : 1,642.37, 2014: 1,690.09
Inflation rate:
1. United States: 1.7%
2. Canada: 2.6%
3. Japan: 1.6%
4. italy: 1.0%
5. Australia: 0.28 %
6. United Kingdom: 1.62 %
Answer:
1. Increasing
2. A. The elasticity of private saving with respect to the after-tax real interest rate
B. The response of private saving to changes in the government budget deficit
C. The elasticity of investment with respect to the interest rate
Explanation:
1. It is difficult to implement both of these policies at the same time because reducing taxes on private spending has the effect of <u><em>Increasing</em></u> the government budget deficit.
A Government budget deficit is acquired when the government spends more than it earns. The Government earns money from taxes and if it spends more than it receives in taxes, that will lead to a deficit. If taxes on Private spending are reduced, this will lead to less tax revenue for the government thereby increasing the Deficit.
2. All of the listed options are useful in determining which policy would be a more effective way to raise investment.
The elasticity of private saving with respect to the after-tax real interest rate refers to how much private saving changes in reaction to a change in the tax rates. This can enable one decide how much investment will be expected if the Government reduces or increases taxes.
The response of private saving to changes in the government budget deficit is also a useful factor to look at because private savings reduce when government deficits reduce.
Also how much does investment change by due to interest rates. This will be important to note in terms of Private Investment to see if it will be beneficial to use it over reducing the government budget deficit given a certain interest rate.
1837 Douglass joined the East Baltimore Improvement Society.
Checks written in November $9,750
Less: Checks paid by bank in November $8,800
Checks outstanding at the end of November $950
Add: Checks written in December $11,762
Less: Checks paid by bank in December 10,889
Checks outstanding at the end of December $1,823
hope this helps!
- a random freshman
