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Safar App Michig 11 100% GE, Tue 10:50 PM Q. Ed View History Bookmarks Develop W

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Question

Safar App Michig 11 100% GE, Tue 10:50 PM Q. Ed View History Bookmarks Develop Window Help Michigan State University EC 202 Intro to Macroeconomics Fall15 MACOMBER: Ch. 19 C Reade biscms/mod/ibis/view.php?id 2113402 www.saplinglearning.com/i Wikipedi Pop www.sapli... www.sapli... www.sapli... www.sapli... www.sapli... www.sapli... Textbook. TBMMReader For Each... Attempts Score 2/9/2015 10:00 AM A 86.2/100 G 2/8/2015 09:16 PM Gradebook Assignment Information Print Calculator Available From Not Set 00 Questi 2 of 18 12/9/2015 10:00 A Due Date: Map 00 Points Possible 100 Grade Category: Graded 88 Based on the National Savings and Investment dentity, categorize each scenario, according to which category is directly affected. Description: 85 Inflow of Foreign Capital Private Investmen Government Budget Deficit Private Savings Homework (no pe Policies: 98 You can check your answers. 00 You can view solutions when you com up on any question 00 You can keep trying to answer each qu 00 you get it right or give up You lose 5% of the points available to 00 in your question for each incorrect a ansWe 00 Exports of cars decrease imports of French A company builds a factory A farmer buys a tractor Wine increase 00 O Textbook Taxes increase The government Mitchell loses A worker contributes A family cuts builds a bridge 85 O Help With This Topic 00 Web Help & Videos C Technical Support and Bug Rep Check Answer Next Exit Give Up & V US Hint 98

Explanation / Answer

(1) Exports of cars decrease: This will be categorized under inflow of foreign capital. As exports decrease, less capital will flow into the country.

(2) Imports of French wine and cheese: This will be also categorized under inflow of foreign capital. Since this is an import, it will reduce the net inflow of financial capital.

(3) A company builds a factory: This will be categorized under private investment. This represents a demand for financial capital.

(4) A farmer buys a tractor: This will also be categorized under private investment. The differnce between this and (3) is that this is demand of financial capital by an individual, while (3) is that by a company.

(5) Taxes increase: This will be categorized under government budget deficit. An increase in taxes will help reduce this deficit.

(6) The government builds a bridge: This will also be categorized under government budget deficit. This will form part of the expexses category of the budget.

(7) Mitchell loses his job: This will be categorized under private savings. A loss of job will reduce private savings.

(8) A worker contributes to a retirement fund: This will also be categorized under private savings. The worker invests this amount, but the final outcome serves the purpose of saving rather than investment.

(9) A family cuts down on expenses: This will also be categorized under private savings. A reduction in expenses will contribute directly to higher savings. What a family intends to do with that saving is their discretion.