Scenario 14-1
Consider the following data for a closed economy:
Y = $12 trillion
C = $8 trillion
I = $2 trillion
G = $2 trillion
TR = $2 trillion
T = $3 trillion
-Refer to Scenario 14-1.Based on the information above,what is the level of public saving?

Question

Quizplus · Accepted Answer

Public saving is calculated as T - G - TR. Here, T = $3 trillion, G = $2 trillion, and TR = $2 trillion. So, public saving = $3 trillion - $2 trillion - $2 trillion = -$1 trillion, indicating a deficit.

Scenario 14-1 Consider the Following Data for a Closed Economy