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  • Phùng-Xuân-Hải HS140655 ECO121 Individual-Assignment2

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    Lê Huy Hoàng
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    This document contains an individual assignment submitted by Phùng Xuân Hải with their student ID HS140655. It includes two questions, the first asking to identify examples as either investments or savings. The second question provides economic data for a closed economy called Lalaland, including values for GDP, consumption, taxes, government spending, and an investment function. It then calculates private saving, public saving, national saving, and the equilibrium real interest rate of 15% based on setting investment equal to national saving.

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    This document contains an individual assignment submitted by Phùng Xuân Hải with their student ID HS140655. It includes two questions, the first asking to identify examples as either investments or savings. The second question provides economic data for a closed economy called Lalaland, including values for GDP, consumption, taxes, government spending, and an investment function. It then calculates private saving, public saving, national saving, and the equilibrium real interest rate of 15% based on setting investment equal to national saving.

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    77 views1 page

    Phùng-Xuân-Hải HS140655 ECO121 Individual-Assignment2

    Uploaded by

    Lê Huy Hoàng
    This document contains an individual assignment submitted by Phùng Xuân Hải with their student ID HS140655. It includes two questions, the first asking to identify examples as either investments or savings. The second question provides economic data for a closed economy called Lalaland, including values for GDP, consumption, taxes, government spending, and an investment function. It then calculates private saving, public saving, national saving, and the equilibrium real interest rate of 15% based on setting investment equal to national saving.

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    © All Rights Reserved
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    of 1

    Name: Phùng Xuân Hải

    Student ID: HS140655


    Subject: ECO121

    INDIVIDUAL ASSIGNMENT 2
    Question 1:
    a. Your family buys a new house.
    => Investment
    b. You use this month’s salary payment of 50 million VND in cash to buy stock in FPT.
    => Saving
    c. Your roomate earns 2 million VND and deposits it in her account at TP Bank.
    => Saving
    d. You borrow 30 million VND from a bank to buy a motorbike to use in your pizza delivery
    business.
    => Investment

    Question 2
    Economists in Lalaland, a closed economy, have collected the following information about the
    economy for a particular year:
    Y = 11,000
    C = 7,000
    T = 2,000
    G = 2,200
    The economists also estimate that the investment function is:
    I = 3,300 – 100 r,
    where r is the country’s real interest rate, expressed as a percentage. Calculate
    + Private saving = Y – T – C = 11,000 – 7,000 – 2,000 = 2,000
    + Public saving = T – G = 2,000 – 2,200 = -200
    + National saving = Investment = Public Saving + Private Saving = 2,000 – 200 = 1,800
    + The equilibrium real interest rate
    3,300 – 100r = 1,800
     100r = 1,500
     r = 15%

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