Suppose the government has a budget deficit of $400.If the country's level of national saving is $200,then private saving must be

Name: Suppose the government has a budget deficit of $400.If the country's level of national saving is $200,then private saving must be
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

The equation for national saving is: 
National Saving = Private Saving + Government Saving 
Since there is a budget deficit of $400, the government saving is negative -$400. 
Thus: 
$200 = Private Saving - $400 
Private Saving = $600

Suppose the Government Has a Budget Deficit of $400