In 2001 private saving in the country of Polity was $112 billion,investment was $114.5 billion,and the current account balance was -$26.5 billion.From the uses-of-saving identity,how much was the government of Polity saving?
A)-$24 billion
B)-$39 billion
C)$24 billion
D)$39 billion

Question

Quizplus · Accepted Answer

The uses-of-saving identity states that private saving plus government saving equals investment plus the current account balance. Rearranging the identity to solve for government saving: Government saving = Investment + Current account balance - Private saving = $114.5 billion - $26.5 billion - $112 billion = -$24 billion.

In 2001 Private Saving in the Country of Polity Was