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from herri: Krugman and Obstfelt: (Values are for year 2006 for USA; adopted from Papadimitriou) If SP = Y - T - C is negative (private savings) -3 % And SG = T - G is also negative (government savings) -2.4 % Than S = SP + SG will be negative as well (total savings) -5.4 % Current Account Balance -5.4 % Where Y is aggregate income, T is taxes, C stand for consumtion or private spending and G for government spending.
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What are five determinants of saving?
Five determinants of saving include income levels, which directly influence the ability to save, and interest rates, which can affect the incentive to save versus spend. Consumer confidence also plays a role; higher confidence typically leads to increased spending and reduced saving. Additionally, personal financial goals, such as saving for retirement or a house, can drive saving behavior, while economic conditions, like inflation, can impact the real value of savings. Lastly, cultural attitudes towards saving versus consumption can significantly shape saving habits.
What is demand function.what are its determinants of demand function?
the determinats demand are prices and non price factor
What is determinants of price elasticity of demand?
The rate of change of price and the rate of change of demand as a function of price.
What are personal determinants?
There are many determinants of personality. These determinants are largely dependent on the environment that a child grows up in.
Basic determinants of investment?
The immediate determinants of investment are: (a) the expected rate of return and (b) the real rate of interest.
What are five determinants of saving?
Five determinants of saving include income levels, which directly influence the ability to save, and interest rates, which can affect the incentive to save versus spend. Consumer confidence also plays a role; higher confidence typically leads to increased spending and reduced saving. Additionally, personal financial goals, such as saving for retirement or a house, can drive saving behavior, while economic conditions, like inflation, can impact the real value of savings. Lastly, cultural attitudes towards saving versus consumption can significantly shape saving habits.
What are the objective and subjective determinants of consumption?
Objective determinants of consumption include factors such as income, prices, and interest rates that impact how much individuals can afford to spend. Subjective determinants of consumption involve personal preferences, tastes, and attitudes towards saving and spending that influence consumer behavior. Both types of determinants interact to shape overall consumption levels in an economy.
What is demand function.what are its determinants of demand function?
the determinats demand are prices and non price factor
What is determinants of price elasticity of demand?
The rate of change of price and the rate of change of demand as a function of price.
What are motivators and determinants?
What is a Motivants and Determinants
What are personal determinants?
There are many determinants of personality. These determinants are largely dependent on the environment that a child grows up in.
What are the determinants of selective attention?
What are the determinants of selective attention?
What are determinants of the market size?
what are the determinants of the market size
Non-Income Determinants of Consumption and Saving?
wealth price level rates of interest and taxes expectations for future prices, money income and availability of goods consumer indebtedness
Which of these is one of the five determinants of health?
Which of these is one of the five determinants of health
What are Determinants of personalty?
The determinants of personalty are the following:Biological factorsFamily Factorssituational factorsenvironmental factors
Find out about the objective and subjective determinants consumption?
subjective and objective determinants of consumption
