(急)AL ECON past paper MACRO 04-Q3 (d) - 資訊報導

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(急)AL ECON past paper MACRO 04-Q3 (d)

2017/06/13 01:17

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(急)AL ECON past paper MACRO 04-Q3 (d)

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可唔可以打條題目出泥比我？ AL ECON PAST PAPER MACRO 04-Q3 (d) 系關於national saving, investment架Q3 part d好似系ISLM 唔該!!

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As an accumulation of assets, investment can take two forms - i.e., purchase of real assets (such as houses and machines) and of financial assets (such as stocks and bonds). (a) Why is financial investment excluded from national-income accounts, but included in balance-of-payments accounts? (b) In a closed economy, why must saving equal investment when the goods market is in equilibrium? Explain whether it is real or financial investment (or the sum of the two) that is equated to saving. [Hint: Saving (national saving, to be exact) is output not consumed by the households and the government, i.e. S = Y-C-G. It is made up of private saving (i.e. disposable income net of consumption, S*private = Y-T-C) and public saving (i.e. the government's budget surplus, S*public = T-G).] (c) In an open economy, saving need not equal investment. Why can the difference between saving and investment be viewed either as a current account surplus/deficit or a capital account surplus/deficit? Why can we also view the difference as net foreign investment? Is such foreign investment real or financial? (d) The answers to (a), (b) and (c) above are not model-specific (i.e. they apply to both the elementary Keynesian model as well as the IS-LM model). Now, consider the open-economy goods market equilibrium, i.e. S-I = NX, in the context of IS-LM model. As in the closed economy, suppose that saving depends positively on domestic income and investment depends negatively on the interest rate. Suppose, in addition, that the current account balance (NX) depends negatively on domestic income (because a higher income would increase import demand). Let us define the open-economy IS curve as the locus of combinations of the interest rate and income that satisfy S-I =NX. Explain why the open-economy IS curve is downward-sloping. hope can help you^^