Consider the long-run theory of investment,saving,and growth.Suppose the government has a budget surplus of $2 billion.If the country's level of private saving is $1.2 billion,then national saving must be

Question

Quizplus · Accepted Answer

National saving is the sum of private saving and the government budget surplus. Therefore, national saving = $1.2 billion (private saving) + $2 billion (government surplus) = $3.2 billion.

Consider the Long-Run Theory of Investment,saving,and Growth