Suppose that private saving is $1590 billion,investment is $1945 billion,and the current account balance is -$489 billion.From the uses-of-saving identity,how much is government saving?
A)-$134 billion
B)-$844 billion
C)$844 billion
D)$134 billion

Question

Quizplus · Accepted Answer

The uses-of-saving identity is given by private saving + government saving = investment + current account balance. Plugging in the given values: $1590 billion + government saving = $1945 billion - $489 billion. Solving for government saving gives us government saving = -$134 billion.

Suppose That Private Saving Is $1590 Billion,investment Is $1945 Billion,and