Refer to the figure below to answer the following questions.
Figure 7.3.2
-Figure 7.3.2 shows the situation where the government has a budget _______ Private saving is _______.

Question

Refer to the figure below to answer the following questions.
  Figure 7.3.2
-Figure 7.3.2 shows the situation where the government has a budget _______ Private saving is _______.

Quizplus · Accepted Answer

The government has a budget surplus when its revenue exceeds its expenditure. In this case, the government's revenue is $45 billion and its expenditure is $30 billion, so the government has a budget surplus of $15 billion. Private saving is the amount of money that households save out of their disposable income. In this case, households have a disposable income of $60 billion and they save $20 billion, so private saving is $20 billion.

Refer to the Figure Below to Answer the Following Questions