The country of Yokovia does not trade with any other country. Its GDP is $20 billion. Its government collects $4 billion in taxes and pays out $3 billion to households in the form of transfer payments. Consumption equals $15 billion and investment equals $2 billion. What is public saving in Yokovia, and what is the value of the goods and services purchased by the government of Yokovia?
A)-$2 billion and $3 billion
B)$1 billion and $3 billion
C)-$1 billion and $4 billion
D)There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

Public saving is the difference between government revenue and government spending. In this case, government revenue is $4 billion and government spending is $3 billion, so public saving is $1 billion. The value of the goods and services purchased by the government of Yokovia is $3 billion.

The Country of Yokovia Does Not Trade with Any Other