1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tekilochka [14]
3 years ago
13

In a small, closed economy, national income (GDP) is $ 400.00 million for the current quarter. Individuals have spent $ 150.00 m

illion on the consumption of goods and services. They have paid a total of $ 200.00 million in taxes, and the government has spent $ 150.00 million on goods and services this quarter. Use this information and the national income identity to answer the questions. How much is spent on investment in this economy?
Business
1 answer:
Mashcka [7]3 years ago
6 0

Answer:

The amount spent in this economy in the said quarter is<em> $100,000,000.00</em>

Explanation:

<em>However, in closed economies what it simply means is that there are no exports and imports.</em>

<em />

Investment (I) = business investment plus residential investment plus inventory investment. Government Purchases (G) = general government consumption plus general government investment. Net Exports (NE) = exports minus imports plus net tourism.

∴ to calculate the amount of money spent on this closed economy, I will use the <em>Expenditure Approach formula</em> for GDP and make Investment the subject of the formula which is

GDP formula is used which states that total output/GDP (Y) is equal to Consumption (C) + Investment (I) + Government Spending (G) + Net exports (NX). Where net exports is exports (X) minus imports (M): NX = X – M.

Where:

GDP (Y) = C + I + G + (X-M)

Where:

GDP (Y) = $400,000,000.00

C = $150,000,000.00

I = 0

G = $150,000,000.00

(X-M) = 0

GDP (Y) = C + I + G + (X-M) =

$400,000,000.00 = $150,000,000.00 + (I) + 150,000,000.00 + (X-M)

Making (I) the subject of the Formula

GDP- C -G = I

∴ $400,000,000.00 - $150,000,000.00 - $150,000,000.00 = I

∴ $400,000,000.00 - $300,000,000.00

=<em> $100,000,000.00</em>

<em></em>

The amount spent in this economy in the said quarter

=<em> $100,000,000.00.</em>

<em></em>

<em>Note: </em><em>I did not add the Tax because I used the Expenditure approach method which does not include the tax values while the Income Approach method does include it but excludes Export and Import values.</em>

You might be interested in
Moonlight Company sells $ 300 comma 000 of 9​%, 15​-year bonds for 67.0453 on April​ 1, 2018. The market rate of interest
Lubov Fominskaja [6]

Answer:

Interest expense for the year: 33,590.33

Explanation:

face value $ 300,000

rate 9%

time 15 years

issued at   $  201, 136

discount:  $    98, 864

amortization per year under straight-line: the discount is equally distributed for each period

98,864 / 15 = 6,590.33

<u><em>interest expense per year:</em></u>

face value x rate + amortization:

300,000 x 0.09 + 6,590.33 = <em>33,590.33</em>

3 0
3 years ago
The board of governors of the federal reserve system can increase commercial bank reserves by
Marina CMI [18]
<span>The board of governors of the federal reserve system can increase commercial bank reserves by increasing the size of its term auction facility.</span>
3 0
3 years ago
What is the result of strong, effective, market-supporting formal institutions?
PSYCHO15rus [73]
<span>The result of a strong, effective, market supporting formal institution is a developed economy. A developed economy can be found in a developed and industrialized country. It will be a sovereign state that is highly developed in technology and infrastructure.</span>
6 0
3 years ago
Guess my birthday and i’ll mark you brainiest . hint october
oksian1 [2.3K]

Um...october 22nd ?

i hope this is it lol

8 0
3 years ago
Read 2 more answers
Whether speech is going to be delivered before one or one hundred people, the speaker should:
Nat2105 [25]

Answer:

C). Prepare their thoughts in advance.

Explanation:

A speaker aims to serve a specific purpose through his/her speech(to inform, to entertain, to convince, to motivate, etc.). In order to serve this purpose effectively by the end of the speech, it is very crucial to 'prepare the thoughts that the speaker wishes to convey in advance' as <u>it helps him/her in organizing the thoughts in a logical order to ensure its efficacy</u>. It <u>also assists in analyzing whether the thoughts get along with each other and also keeps room for creativity</u> which can enhance its impact and make the purpose more successful. Thus, be it one or one hundred people, it is important for a speech to be prepared in advance and hence, <u>option C</u> is the correct answer.

3 0
3 years ago
Read 2 more answers
Other questions:
  • GI Designs, a copper furniture manufacturer, increased the price on its copper tabletops by 20 percent for three months to see w
    13·1 answer
  • Income elasticity measures how a good's quantity demanded responds to change in the goods price. producers' incomes. change in t
    6·1 answer
  • Suppose that an increase in consumer confidence raises consumers' expectations of future income and thus the amount they want to
    14·1 answer
  • What is VISA? Is it a bank?
    15·1 answer
  • What kinds of decisions should members of congress be willing to anger their party leadership over? on what kinds of issues or d
    9·1 answer
  • Breakwater Aquatics has a 45 day accounts receivable period. The estimated quarterly sales for this year, starting with the firs
    9·1 answer
  • Prince Paper has budgeted the following amounts for its next fiscal​ year: Total fixed expenses $ 900 comma 000 Selling price pe
    7·1 answer
  • 19) Which of the following is a fom of business organization that offers limited liability to its owners
    12·1 answer
  • If someone introduces himself using a formal introduction, you should _____.
    12·1 answer
  • Where should a company undergoing reorganization report the gains and losses resulting from the reorganization?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!