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# Assignment No 1 Spring 2015, ECO 403 Due date 06-08-2015

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Waise iss group k log Bohat nikamme hai :(

How to calculate National savings..?

Types of saving

• Private saving = (Y –T) – C
• Public saving = T – G

National saving, S = private saving + public saving

= (Y –T) – C + T – G

= Y – C – G

The government purchases multiplier

formula

∆Y= 1/1-MPC∆G

GDP = C + G + I + (X - M)

National saving= Public Savings + Private Savings

Nominal interest rate = (1 + real interest rate) (1 + inflation rate)

The multiplier= 1/1-MPC+t(MPC)+MPI

hun baqi ap khud mehnat kro ........:P :P :P :P

Wasi Janjua  question ma t and MPI ke value to given nai hay

1. Gross domestic product (Y) = GDP = C + I + G + Net Exports
2. National saving = Y – C – G
3. Nominal interest rate = real interest rate + expected inflation rate
4. Government purchases multiplier= ∆G= (1-MPC) ×∆Y

plzzz explain the proper formula of government purchases multiplier i have big confusion in ∆G and ∆Y :(

Please see the handout page no. 81

ohhhhh sory ay te me takiya e nai..........

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