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it is a flow that shows the flow of money openly
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Describe circular flow model of an open economy?
it is a flow of cash between businesses,fims
The open-economy macroeconomic model examines the determination of?
the trade balance and the exchange rate.
Circular flow of income in an open economy?
Balance of payments sector, Government expenditure Assignment Help, Tutor HelpCircular Flow of Income in a Four Sector EconomyTake the inflows and outflows of the household, business and government sectors in relation to the foreign sector. The household sector buys goods imported from overseas and makes payment for them which is leakage from the circular flow. The households may receive transfer payments from the foreign sector for the services rendered by them in foreign countries.Conversely, the business sector exports goods to foreign countries and its receipts are an injection in the circular flow. Likewise, there are many services rendered by business firms to foreign countries such as shipping, insurance, banking etc. for which they receive payments from overseas. These are the leakages from the circular flow.Like the business sector modern governments also export and import goods and services and lend to and borrow from foreign countries. For all the exports of goods, the government receives payments from abroad.Similarly, the government receives payments from foreigners when they visit the country as tourists and for receiving education etc. and also when the government provides shipping, insurance and banking services to foreigners through the state owned agencies. It also receives royalties, interest, dividends etc. for investments made abroad. These are injections into the circular flow.Conversely, the leakages are payments made for the purchase of goods and services to foreigners. In the in the below diagram, the circular flow of the four sector open economy with saving, taxes and imports shown as leakages from the circular flow on the right hand side of the diagram and investment, government purchases and exports as injections into the circular flow on the left side of the figure.Further, imports, exports and transfer payments have been shown to arise from the three domestic sectors -- the household, the business and the government. These outflows and inflows pass through the foreign sector which is also called the "balance of payments sector".If exports exceed imports, the economy has a surplus in the balance of payments. And if imports exceed exports, it has a deficit in the balance payments. But in the long run, exports of an economy must balance its imports. This is achieved by the foreign trade policies adopted by the economy.The whole analysis can be shown in simple equations:Y = C + I + G ......Equation (1)Where Y represents the production of goods and services, C for consumption expenditure, I for investment level in the economy and G for Government expenditure respectively.Now we introduce taxation in the model to equate the government expenditure.Therefore Y = C + S + T ..........Equation (2)Where S is saving T is taxation.By equating (1) and (2), we get, C + I + G = C + S + TTherefore, I + G = S + TWith the introduction of foreign sector, we divide investment into domestic investment (Id) and foreign investment (If) and get Id + If + G = S + TBut If = X -- M, where X is exports and M is imports.Id + (X -- M) + G = S + TId + (X -- M) = S + (T -- G)The equation shows the equilibrium condition in the circular flow of income and expenditure.Circular Flow of Income in a Four Sector EconomyOnline Live Tutor Balance of payments sector, Government expenditure:We have the best tutors in Economics in the industry. Our tutors can break down a complex Balance of payments sector, Government expenditure problem into its sub parts and explain to you in detail how each step is performed. This approach of breaking down a problem has been appreciated by majority of our students for learning Balance of payments sector, Government expenditure concepts. You will get one-to-one personalized attention through our online tutoring which will make learning fun and easy. Our tutors are highly qualified and hold advanced degrees. Please do send us a request for Balance of payments sector, Government expenditure tutoring and experience the quality yourself.Online Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Help:If you are stuck with an Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Homework problem and need help, we have excellent tutors who can provide you with Homework Help. Our tutors who provide Circular Flow of Income in a Four Sector Economy in a Four Sector Economy help are highly qualified. Our tutors have many years of industry experience and have had years of experience providing Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Homework Help. Please do send us the Circular Flow of Income in a Four Sector Economy in Four Sector Economy problems on which you need help and we will forward then to our tutors for review.
Is Russia a small open economy or large open economy?
Large open economy.
Why in an open economy does the supply of loanable funds slopes upward?
The supply of loanable funds slopes upwards in an open economy because there are more funds available. An open economy allows for more money to be put into the economy.
Describe circular flow model of an open economy?
it is a flow of cash between businesses,fims
The open-economy macroeconomic model examines the determination of?
the trade balance and the exchange rate.
Circular flow of income in an open economy?
Balance of payments sector, Government expenditure Assignment Help, Tutor HelpCircular Flow of Income in a Four Sector EconomyTake the inflows and outflows of the household, business and government sectors in relation to the foreign sector. The household sector buys goods imported from overseas and makes payment for them which is leakage from the circular flow. The households may receive transfer payments from the foreign sector for the services rendered by them in foreign countries.Conversely, the business sector exports goods to foreign countries and its receipts are an injection in the circular flow. Likewise, there are many services rendered by business firms to foreign countries such as shipping, insurance, banking etc. for which they receive payments from overseas. These are the leakages from the circular flow.Like the business sector modern governments also export and import goods and services and lend to and borrow from foreign countries. For all the exports of goods, the government receives payments from abroad.Similarly, the government receives payments from foreigners when they visit the country as tourists and for receiving education etc. and also when the government provides shipping, insurance and banking services to foreigners through the state owned agencies. It also receives royalties, interest, dividends etc. for investments made abroad. These are injections into the circular flow.Conversely, the leakages are payments made for the purchase of goods and services to foreigners. In the in the below diagram, the circular flow of the four sector open economy with saving, taxes and imports shown as leakages from the circular flow on the right hand side of the diagram and investment, government purchases and exports as injections into the circular flow on the left side of the figure.Further, imports, exports and transfer payments have been shown to arise from the three domestic sectors -- the household, the business and the government. These outflows and inflows pass through the foreign sector which is also called the "balance of payments sector".If exports exceed imports, the economy has a surplus in the balance of payments. And if imports exceed exports, it has a deficit in the balance payments. But in the long run, exports of an economy must balance its imports. This is achieved by the foreign trade policies adopted by the economy.The whole analysis can be shown in simple equations:Y = C + I + G ......Equation (1)Where Y represents the production of goods and services, C for consumption expenditure, I for investment level in the economy and G for Government expenditure respectively.Now we introduce taxation in the model to equate the government expenditure.Therefore Y = C + S + T ..........Equation (2)Where S is saving T is taxation.By equating (1) and (2), we get, C + I + G = C + S + TTherefore, I + G = S + TWith the introduction of foreign sector, we divide investment into domestic investment (Id) and foreign investment (If) and get Id + If + G = S + TBut If = X -- M, where X is exports and M is imports.Id + (X -- M) + G = S + TId + (X -- M) = S + (T -- G)The equation shows the equilibrium condition in the circular flow of income and expenditure.Circular Flow of Income in a Four Sector EconomyOnline Live Tutor Balance of payments sector, Government expenditure:We have the best tutors in Economics in the industry. Our tutors can break down a complex Balance of payments sector, Government expenditure problem into its sub parts and explain to you in detail how each step is performed. This approach of breaking down a problem has been appreciated by majority of our students for learning Balance of payments sector, Government expenditure concepts. You will get one-to-one personalized attention through our online tutoring which will make learning fun and easy. Our tutors are highly qualified and hold advanced degrees. Please do send us a request for Balance of payments sector, Government expenditure tutoring and experience the quality yourself.Online Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Help:If you are stuck with an Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Homework problem and need help, we have excellent tutors who can provide you with Homework Help. Our tutors who provide Circular Flow of Income in a Four Sector Economy in a Four Sector Economy help are highly qualified. Our tutors have many years of industry experience and have had years of experience providing Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Homework Help. Please do send us the Circular Flow of Income in a Four Sector Economy in Four Sector Economy problems on which you need help and we will forward then to our tutors for review.
Is Russia a small open economy or large open economy?
Large open economy.
How do you open the out-flow valve on a Hayward chlorine feeder?
Depends on the model. Just rotate the small valve to the right???
Is Ireland an open or closed economy?
It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.
Differentiate between open channel flow and pipe flow?
The open channel flow has a free or rather open surface whereas the pipe flow has a closed surface.
Is giant food open on Christmas?
Per this week's Giant circular, all stores are open regular Sunday hours on Easter.
Differentiate between open channel flow and pipe flow-?
The open channel flow has a free surface whereas the pipe flow has a closed surface.
Why in an open economy does the supply of loanable funds slopes upward?
The supply of loanable funds slopes upwards in an open economy because there are more funds available. An open economy allows for more money to be put into the economy.
What you mean by open economy and closed economy?
By open economy it means that economy in which private people are allowed to participate in making economic decisions while,by closed economy it means the economy in which the government is the one planning for the whole society
Is open end economy better than closed economy?
no
