Suppose a closed economy had public saving of $3 trillion and private saving of $2 trillion.What are national saving and investment for this country?

Question

Quizplus · Accepted Answer

In a closed economy, national saving is the sum of public and private saving. Therefore, national saving is $3 trillion + $2 trillion = $5 trillion. In a closed economy, national saving equals investment, so investment is also $5 trillion.

Suppose a Closed Economy Had Public Saving of $3 Trillion