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NISA [10]
3 years ago
15

National saving is made up of two components: public saving and private saving. National income/output (Y), private consumption

(C), government spending (G), and government taxes (T) can be used to calculate national saving (S). Move the appropriate phrases to complete the equation for the national saving identity. Assume a closed economy.
Business
1 answer:
inessss [21]3 years ago
3 0

Answer:

S-private =(Y-T) - C....(1)

S-public = (T-G)....(2)

Therefore:

S = (Y-T) - C + T- G....(3)

Note: Y= C + I + G

Substitute the Y into equation (3)

That is,

S = (C + I + G -T) - C + T- G

Cancel ❌ out C for C, G for G, T for T so we are left with the identity national savings

S = I

Investment = Private Savings + Public Saving

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Cameron visits a sporting goods store to buy a new set of golf clubs. He is willing to pay $750 for the clubs but buys them on s
svetoff [14.1K]

Answer:

$175

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay - price of the good

Consumer surplus = $750 -  $575 = $175

4 0
3 years ago
Wriston Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be
ch4aika [34]

Answer:

$2,100

Explanation:

Cash Available = Opening Balance + Receipts - Disbursements - Desired Balance

                          = $15,000 +$89,600  - $72,500 - $30,000

                          = $2,100

Therefore,

The excess  of cash available over disbursements for the month would be  $2,100

7 0
3 years ago
2. A series of five constant dollar (or real-dollar) payments, beginning with $6,000 at the end of the first year, are increasin
Komok [63]

Answer:

The equivalent present worth of the series is $27,211.16.

Explanation:

The first thing to do is to calculate the real interest using the following formula:

1 + i = (1 + r)(1 + inf) ..................... (1)

Where;

i = market interest rate = 11%, or 0.11

r = real interest rate = ?

inf = average general inflation rate = 4%, or 0.04

Substituting the values into equation (1) and solve for r, we have:

1 + 0.11 = (1 + r)(1 + 0.04)

1 + r = 1.11 / 1.04

1 + r = 1.06730769230769

r =  1.06730769230769 – 1

r = 0.06730769230769

The equivalent present worth of the series can now be calculated using the formula for calculating the present value (PV) of a growing annuity as follows:

PVga = (P / (r - g)) * (1 - ((1 + g) / (1 + r))^n) .................... (2)

Where;

PVga = present value of a growing annuity or equivalent present worth of the series = ?

P = constant dollar (or real-dollar) payments = $6,000

r = real interest rate = 0.06730769230769

g = growth rate of payments = 5%, or 0.05

n = number of years = 5

Substituting the values into equation (2), we have:

PVga = (6000 / (0.06730769230769 - 0.05)) * (1 - ((1 + 0.05) / (1 + 0.06730769230769))^5)

PVga = 346,666.666666712 * 0.078493722845371

PVga = $27,211.16

Therefore, the equivalent present worth of the series is $27,211.16.

8 0
3 years ago
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