Question 11 of 16 Map Deb pling Based on the National Savings and Investment lde

Question

Question 11 of 16 Map Deb pling Based on the National Savings and Investment ldentity, categorize each scenario, according to which category is directly affected. Private Savings Inflow of Foreign Capital Private Investment Government Budget Deficit e government Mitchell loses A worker contributes Exports of cars decrease builds a bridge his job to a retirement fund A company builds a factory Taxes increase imports of French A farmer buys a tractor Wine Increase A family cuts down on expenses A a Previous & Give up & View Salution Check Answer Next Exit

Explanation / Answer

taxes increases

When a family cuts down its expenses or contribution to the retirement fund or when Mitchell loses his job, all afftects the private savings because when expenses are cut down, the savings automatically increases because usually income is either spent or saved. Next, retirement fund is in itself a long-run saving provision and lastly, when someone loses a job, initially survives on the past savings.

Inflow of capital occurs when either there is export or import for which there occurs a transaction. When the exports fall, the income is earned from abroad is less and when the imports rise, more capital is flowed out.

Company building a factory and farmer buying a tractor are examples of private investment because they have done by private entreprises for private benefit.

Government spending and taxes affects the government budget directly as the taxes are the income and spending are the expenditure for the government.

PRIVATE SAVING INFLOW OF CAPITAL PRIVATE INVESTMENT GOVT. BUDGET DEFICIT Mitchell loses his job exports of cars decrease a company builds a factory The government builds a bridge a worker contributes to retirement fund imports of French wine increases farmer buys a tractor

taxes increases

a family cuts down on expenses

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