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

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Quizplus · Accepted Answer

The national saving is the sum of private saving and public saving. Given a budget deficit of $400 (which means public saving is -$400) and national saving of $200, private saving must be $600 to satisfy the equation: Private Saving = National Saving - Public Saving = $200 - (-$400) = $600.

If the Government Has a Budget Deficit of $400 and the Country's