Scenario 10-1
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 10-1.Based on the information above,what is the level of private saving in the economy?

Question

Quizplus · Accepted Answer

Private saving is calculated as the difference between what households earn (Y - T + TR) and what they spend on consumption (C). Using the data provided: Y = $12 trillion, T = $3 trillion, TR = $2 trillion, and C = $8 trillion. So, private saving = (Y - T + TR) - C = ($12 trillion - $3 trillion + $2 trillion) - $8 trillion = $3 trillion.

Scenario 10-1 Consider the Following Data for a Closed Economy