b. government tax revenue c. public saving d. private saving 18. Which of the following equations represents GDP for a closed economy? a. = + + + Y C I G T b. = - S I G c. = - + I Y C G d. = + + Y C I G 19. Which of the following equations represents GDP for an open economy? a. = + + + Y C I G NX b. = - NX I G c. = - + + I Y C G NX d. = + + Y C I G 20. In a closed economy, national saving equals a. investment. b. income minus the sum of consumption and government purchases. c. private saving plus public saving. d. All of the above are correct. 21. In a small closed economy investment is $50 billion and private saving is $55 billion. What are public saving and national saving? a. $60 billion and $5 billion b. $50 billion and -$5 billion c. $5 billion and $60 billion d. -$5 billion and $50 billion 22. Suppose a closed economy had public saving of $2 trillion and private saving of $4 trillion. What are national saving and investment for this country? a. $6 trillion, $6 trillion b. $6 trillion, $2 trillion c. $1 trillion, $4 trillion d. $2 trillion, $2 trillion 23. Consider the expressions - and - - Which of the following statements is correct? T G Y T C. a. Each one of these is equal to national saving. b. Each one of these is equal to public saving. c. The first of these is private saving; the second one is public saving. d. The first of these is public saving; the second one is private saving. 24. According to the definitions of private and public saving, if and remained the same, an Y, C, G increase in taxes would a. raise both private and public saving. b. raise private saving and lower public saving. c. lower private saving and raise public saving. d. lower private and public saving. 25. If the tax revenue of the federal government exceeds spending, then the government necessarily a. runs a budget deficit. b. runs a budget surplus.
b. government tax revenue c. public saving d. private saving 18. Which of the following equations represents GDP for a closed economy? a. Y = C + I + G + T b. S = I - G c. I = Y - C + G d. Y = C + I + G 19. Which of the following equations represents GDP for an open economy? a. Y = C + I + G + NX b. NX = I - G c. I = Y - C + G + NX d. Y = C + I + G 20. In a closed economy, national saving equals a. investment. b. income minus the sum of consumption and government purchases. c. private saving plus public saving. d. All of the above are correct. 21. In a small closed economy investment is $50 billion and private saving is $55 billion. What are public saving and national saving? a. $60 billion and $5 billion b. $50 billion and -$5 billion c. $5 billion and $60 billion d. -$5 billion and $50 billion 22. Suppose a closed economy had public saving of $2 trillion and private saving of $4 trillion. What are national saving and investment for this country? a. $6 trillion, $6 trillion b. $6 trillion, $2 trillion c. $1 trillion, $4 trillion d. $2 trillion, $2 trillion 23. Consider the expressions T - G and Y - T - C. Which of the following statements is correct? a. Each one of these is equal to national saving. b. Each one of these is equal to public saving. c. The first of these is private saving; the second one is public saving. d. The first of these is public saving; the second one is private saving. 24. According to the definitions of private and public saving, if Y, C, and G remained the same, an increase in taxes would a. raise both private and public saving. b. raise private saving and lower public saving. c. lower private saving and raise public saving. d. lower private and public saving. 25. If the tax revenue of the federal government exceeds spending, then the government necessarily a. runs a budget deficit. b. runs a budget surplus.
Questions%20for%20Saving.docx