If national saving equals $100,000, net taxes equal $100,000 and government expenditure equals $25,000, what is private saving?
A)$25,000
B)$225,000
C)-$25,000
D)zero
E)$175,000

Question

Quizplus · Accepted Answer

Private saving equals national saving minus government expenditure minus net taxes. Therefore, private saving = $100,000 - $25,000 - $100,000 = $25,000.

If National Saving Equals $100,000, Net Taxes Equal $100,000 and Government